Cyber Coverage Explainer Video: Cloud

Arden Apparel has operations throughout the
United States and Canada and uses a cloud service provider to host its online storefront
for internet sales, process transactions, and capture sales data across its network
of retail outlets. One day, for some mysterious reason, later
determined to be a cyber attack, Arden�s fashion-conscious customers are unable to
connect to the hosted website. As a result, Arden suffers a business interruption
loss. Fortunately, Arden has increased its focus
on cyber security in recent years � and also has the FM Global Advantage policy, which
provides coverage for the actual loss sustained and extra expense resulting from an interruption
of off-premises data services performed by cloud providers, subject to the conditions
of the policy. Hosted websites, network communication and
cloud data storage are just a few examples of how Arden�s online business is covered. In Arden�s case, it�s sales transactions,
but coverage also applies to interruption associated with the storage or transmission
of data. It even applies in the event that an interruption
of such services results in property damage. A cyber attack isn�t the only event to which
the policy could respond. Because of the broad �accidental event�
trigger, coverage could also apply if the interruption were due to a fire or a typhoon
that interrupts its online business. And because the cloud provider�s network
may consist of geographically diverse data centers and transmission lines, coverage applies
on a worldwide basis � and even includes the interruption of satellite services. Thanks in a big part to the FM Global Advantage
policy, Arden is soon back to setting fashion trends, and satisfying its customers.

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