Clarifying War-Related Cyber Risk Exclusions in Cyber Insurance: A Comparative Legal Analysis of Contractual Validity and Societal Implications

This study examines the legal validity of contractually agreed exclusions of war-related cyber risks from cyber insurance coverage, in light of the rising frequency of state-sponsored cyber-attacks and the contractual, legal, and societal challenges they pose. It evaluates the extent to which such exclusion clauses align with general principles of contract law, particularly good faith and contractual balance, and assesses their implications for the protection of insured parties and the stability of digital economic activity.The study highlights the conceptual ambiguity surrounding key terms commonly used in cyber insurance policies, such as “cyber warfare” and “hostile cyber operations,” and analyzes how this ambiguity affects the allocation of rights and obligations between insurers and insureds. Methodologically, the research adopts a descriptive-analytical approach to relevant legal texts and insurance contracts, combined with a comparative analysis of regulatory models and leading international case law, notably Mondelez v. Zurich and Merck v. ACE, in order to ground the discussion in practical disputes. The findings show that current exclusion clauses suffer from significant vagueness, which results in inconsistent judicial interpretations and enables insurers to avoid liability on uncertain or contested grounds, especially when attribution of cyber-attacks to sovereign actors is inconclusive. Judicial precedents tend to interpret such clauses narrowly where policy wording is unclear or where state responsibility is not firmly established.  The study recommends: (1) enacting clear legislative definitions of “cyber warfare” and related concepts; (2) adopting standardized cyber insurance contracts with precise exclusion language; (3) requiring reliance on neutral, expert technical reports rather than political judgments in attributing cyber incidents; and (4) enhancing regulatory oversight to ensure transparency and fairness in the digital risk market. By doing so, the research contributes to the applied humanities and legal studies literature on how law, technology, and insurance practices can be aligned to better manage cyber risks and protect economic and social interests in an increasingly digitized world.