Arch Insurance Adds Cyber Extension For Event Cancellation Losses

by

Estimated reading time: 3 minutes

A ransomware crew hits the ticketing system hours before doors open. Screens go dark. Gates stay shut. Plans get scrapped. Fans vent disappointment and anger. The promoter files an insurance claim under the event cancellation cyber extension and then asks the hard question: Does it also cover cyber liability exposures?

Event Cancellation Cyber Coverage Targets Digital Disruptions

Arch Insurance International introduced event cancellation cyber coverage in London. This new product adds a cyber extension to event cancellation policies and covers losses from hacking or system failures.

Packed stadium concert with Arch Insurance banner, showing event cancellation cyber coverage and cyber liability insurance risk.

“This coverage was developed in response to the growing demand for cyber cover for events as the risk of malicious cyber activity facing event organisers rises,” said Chris Rackliffe, Head of Contingency and Accident & Health at Arch Insurance.

The coverage applies if a cyberattack or computer system failure disrupts an event. It can cover cancellation, abandonment, curtailment, interruption, postponement, or relocation. It also covers failures from third parties, such as communication networks and utility services.

Arch offers this coverage in the London Market and through its Arch IQ quote-and-bind platform. The company helps place coverage quickly for complex events. Organizers rely on systems like ticketing, access control, payments, lighting, and live streaming. Even one outage can lead to extra venue fees and contractor costs.

Incident Response Support Included With Policy

Policyholders have access to security incident response consultants from specialist partners. These services include forensic investigations, legal advice, and public relations support. Teams can help contain malware and document claims.

“In an increasingly digital world, where the seamless operation of technology is vital to the success of events, a cyber incident can have significant financial and operational consequences, “ said Rackliffe.

See also  Incident Response Planning Cuts Cyber Risk, Marsh Report Finds

Get The Cyber Insurance News Upload Delivered
Subscribe to our newsletter!

How Cyber Liability Insurance Buyers May Use It

Event organizers purchase cyber insurance to protect against data and network risks. Some also buy network security insurance for business interruption. This new extension connects disruption costs to event cancellation coverage. Buyers might use it as an add-on to their cyber liability policy or compare it with other options like cyber risk or data breach insurance.

The launch shows there is growing demand for cyber liability insurance in event planning. It also gives tech-focused, time-sensitive venues a new coverage option.

Martin Hinton

Martin Hinton is the Executive Editor and Publisher of Cyber Insurance News and Information. With over three decades of journalism experience across six continents, his work encompasses investigative reporting, documentaries, and coverage of cultural, political, and business news. To learn more about his career, click on his name to visit his LinkedIn page.

Leave a Comment

×