Corporations may be compelled to buy specialized insurance to protect themselves against damages from computer viruses because reinsurers are excluding those losses from catastrophe coverage in property and casualty policies.

Reinsurers began putting exclusions for virus claims into their treaty reinsurance contract renewals in January, says Jill Dalton, North American property practice leader at Marsh & McLennan. More are expected to follow at the July 1 renewal period, meaning corporations will likely get the news soon.

"The direct (insurance) markets will follow through with exclusions for our clients," Dalton says.

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