Glossary

A cyber-physical attack is a security breach that impacts operations, damages property, or otherwise impacts the physical environment.

Cyber-security technology is technology used to reduce cyber risk.

Cyber-space liability describes the liability exposures encountered when communicating or conducting business online.

Cyber and privacy insurance is a type of insurance designed to cover consumers of technology services or products.

Cyber bullying is a form of bullying using electronic media and going beyond the "traditional" face-to-face interactions.

Cyber extortion is a type of online crime in which a criminal threatens to damage or shut down a company's website, email server, or computer system or threatens to expose electronic data or information belonging to the company unless the company pays the criminal a specific ransom amount.

Contract frustration insurance is a form of trade insurance that compensates insureds for losses they incur when actions of a foreign government or conditions in a foreign country prevent fulfillment of a contract. Among the types of events insured under a typical contract frustration policy are the following. Unilateral termination of a contract by a government entity Nonpayment by a government entity after a contract is fulfilled Cancellation of a legally valid import or export license Government default on an award following arbitration of a contract dispute Other governmental acts that frustrate the fulfillment of contracts Regarding coverage related to contracts, typically the amount covered must be specified in the insured contract, and the policyholder must have fulfilled its obligations under the contract.

Creeping expropriation refers to measures designed to pressure a foreign investor to sell its investment to locals, often at less than its actual value. Methods for doing this include discriminatory taxation, elimination of previous tax benefits, requirements to hire locals and pay high wages, and restrictions on prices. For claims of creeping expropriation, it is critical to be able to establish the date a loss occurred or commenced.

Currency inconvertibility refers to measures a host government or financial authority takes to prevent a foreign investor from converting its earnings from the local currency, thus preventing the investor from repatriating its earnings. Coverage generally does not extend to currency devaluations, which are generally regarded as a business risk retained by an owner-investor.