Cyberattacks that cause physical damage to property, such as equipment breakdowns and fires, are relatively infrequent but can leave policyholders with gaps in coverage.

Many traditional insurance policies exclude cyber property coverage, leaving businesses potentially exposed to costly financial and operational losses, experts say.

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Cyber insurance is often marketed as comprehensive, but many policies exclude coverage for physical property damage, said Joshua Gold, a shareholder in law firm Anderson Kill’s New York office.

“The concern for policyholders is that they then look to their property insurance policies to cover them, and perhaps their general liability policies. But more and more, you’re seeing either exclusions for cyber in some of those policies, or else you’re seeing sublimited coverages, which, as we all know, can basically act as an exclusion,” Mr. Gold said.

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