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Court’s Determination That There Is No Duty to Defend Under Cyber Policy for Lawsuit Related to a Gym’s Data Causes Insured to Sweat

On May 11, 2015, the U.S. District Court of Utah denied an insured’s motion for partial summary judgment in Travelers Property Casualty Company of America et al. v. Federal Recovery Serv.et al. The court found there was no duty to… Continue Reading →

Sony and Zurich Settle Data Breach Case Before Appellate Court Can Decide Coverage Issues Under CGL Policy

Early reports indicate that Sony Corp. of America and Zurich American Insurance Company (along with other insurers) have reached settlement terms today in their data breach case involving a hack of the online services for the Sony PlayStation in April 2011. These… Continue Reading →

Cybersecurity Issues are Moving Target for Local Governments

Local governments are increasingly joining the list of smaller targets sought out by hackers as they come to the harsh realization that cybersecurity is not an issue that only plagues large retailers and financial institutions. Unfortunately, a number of local and… Continue Reading →

Insurance Commissioners Consider Cybersecurity Regulatory “Principles” for Cyber Insurers

The National Association of Insurance Commissioners (NAIC), an organization that provides support and coordinates the efforts of state insurance regulators, will focus on cybersecurity issues at its meeting in Phoenix, Arizona on March 28, 2015 through March 31, 2015. The… Continue Reading →

LONDON CALLING: New Report from Marsh and UK Government Outlines Differences in Approach to Cyber Threats in UK and US

On March 23, 2015, Marsh and the United Kingdom Government released a Report titled: UK Cyber Security: The Role of Insurance in Managing and Mitigating the Risk. The Marsh Report is stated to be “the result of close working between the… Continue Reading →

The Upward Trend in Cyberliability Insurance

A recently published article in the L.A. Times titled “Spending On Cyberattack Insurance Soars As Hacks Become More Common,” takes a look at the evolution of cyberliability insurance over the past couple of years. While the insurance industry tried to justify the… Continue Reading →

Harmonization of Federal and State Requirements and Insurance Policy Conditions May Take Time

We have previously addressed First Commonwealth Bank v. St. Paul Mercury Ins. Co., No. 2:14-cv-00019-MPK (W.D. Pa.), where the insurer denied coverage under a professional liability policy because the insured first reimbursed its customer for amounts lost when a fraudulent wire transfer… Continue Reading →

Lawsuit Involving Regional Bank Should Serve as a Warning to Smaller Businesses

On January 21, 2015, Travelers Casualty and Surety of America (Travelers) sued Ignition Studio Inc. (Ignition) based on professional negligence and breach of contract claims in the District Court for the Northern District of Illinois. Travelers filed the action based… Continue Reading →

Why Cyberliability Insurance Growth is “Off the Charts”

Terms like “skyrockets,” “off the charts” and “hockey stick analogy” are being used by those in the cyberliability insurance trenches to describe the growth of cyber insurance over the past year. This dramatic increase in demand—estimated to be doubling and tripling the… Continue Reading →

Early Observations Concerning the Sony Hack and Cyberliability Insurance

At this point, we have been bombarded with many of the details and a lot of speculation related to the November 2014 Sony Pictures hack. In short, hackers stole sensitive information and data including everything from private employee information, emails sent… Continue Reading →

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