News & Analysis as of

Cyber Attacks Policy Terms

Zelle  LLP

Home Depot Ruling Tolls Death Knell For 'Silent Cyber'

Zelle LLP on

A Jan. 13 decision out of the U.S. Court of Appeals for the Sixth Circuit is one more nail in the coffin of "silent cyber." In Home Depot Inc. v. Steadfast Insurance Co., the federal appellate court agreed with the lower...more

Zelle  LLP

Further Clarity Regarding Coverage for Funds Transfer Fraud

Zelle LLP on

At this point, your IT department has almost certainly warned you to approach your e-mail inbox with skepticism--for good reason. Cybercriminals regularly and effectively impersonate our legitimate contacts for illegitimate...more

Morris, Manning & Martin, LLP

Policyholder Files Suit for Cyber Attack and Argues Endorsement is Not Part of Policy

In Conesys, Inc., et al. v. Palomar Excess and Surplus Ins. Co. a policyholder filed a lawsuit alleging breach of contract and bad faith, among others, based on an insurer's application of an “Extortion Threat Sublimit...more

Woodruff Sawyer

Does Cyber Insurance Pay Out?

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Over the last decade, one of the most common gripes I’ve heard about cyber insurance is that policies “don’t pay out.” Cyber coverage is often perceived as being illusory and riddled with “gotcha” clauses. This isn’t the...more

Wiley Rein LLP

No Duty to Defend BIPA Lawsuit Given Absence of Data Breach or Security Failure

Wiley Rein LLP on

The Appellate Court of Illinois, First District, applying Illinois law, has held that a cyber policy did not afford coverage for an underlying lawsuit alleging violations of the Biometric Information Privacy Act (BIPA)...more

Woodruff Sawyer

The Voluntary Parting Exclusion: What You Need to Know

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The US Internet Crime Complaint Center (IC3) received more than 880,000 cybercrime complaints in 2023. Overall financial losses from cybercrime last year reached $12.5 billion, a record-setting year-over-year increase of...more

Robinson+Cole Data Privacy + Security Insider

Insurer Denies Coverage Under Professional Liability Policy for Lawyer’s Email Compromise

Insurance coverage for cyberattacks can be tricky for anyone to navigate, including lawyers. To illustrate this point, a case in New Jersey caught my eye that I thought would be an interesting read for our followers who are...more

Latham & Watkins LLP

War Exclusion Developments in Cyber Insurance Policies

Latham & Watkins LLP on

Policyholders have options when it comes to war exclusions in cyber insurance policies, a focus area for insurers following recent cyberattacks. Key Points: ..Insurers have asserted that war exclusions may preclude...more

Blank Rome LLP

Transferring Risk Helps Relieve Leaders’ Biggest Fears

Blank Rome LLP on

According to Aon’s 2022 Executive Risk Survey, which aggregates and examines responses to its annual international survey of C-suite leaders and senior executives in the U.S., the EU and the UK including 800 respondents at...more

Carlton Fields

Ohio Supreme Court Finds Insured’s Ransomware Payment Not Covered Under Business Owners Policy

Carlton Fields on

In EMOI Services LLC v. Owners Insurance Co., No. 2021-1529 (Ohio Dec. 27, 2022), the Ohio Supreme Court found that there was no coverage for a ransomware attack because there was no direct physical loss as required under the...more

Eversheds Sutherland (US) LLP

Cyber risk strategy: State-backed cyber attacks and trends in cyber policies and risk management

Lloyds Market Bulletin Y5381 - Back in March 2022, we detailed the significant risks to both insureds and insurers posed by unclear cyber insurance policy wordings, with a particular focus on war exclusion clauses in the...more

Ervin Cohen & Jessup LLP

Email Scam Losses May Find Recourse Via Cyber Or Business Interruption Coverage

Losses arising from email scams are usually covered, if at all, under a company’s crime policy. But a recent decision from The District Court in Minnesota suggests that recourse may also be found under an insured’s cyber or...more

Farella Braun + Martel LLP

Caught in the Crossfire — How will the war exclusion affect commercial policyholders?

The war exclusion has received a lot of attention over the past year, particularly since Russia invaded Ukraine in February. Policyholders’ concern that insurers will assert the exclusion as a basis to deny coverage is...more

Bilzin Sumberg

Cyber Insurance Policies May Not Cover Phishing Attack Funds Diversion

Bilzin Sumberg on

The Eleventh Circuit Court of Appeals is considering an appeal from the United States District Court for the Middle District of Florida , in which the District Court ruled that a cyber insurance policy did not cover diversion...more

Womble Bond Dickinson

Will an Act of War Destroy Your Cyberinsurance Coverage?

Womble Bond Dickinson on

Cyberinsurance spurs many complaints from US business. The cost is skyrocketing, retentions (deductibles) are rising quickly, and the insurance companies push their own panel lawyers on customers despite other relationships....more

Eversheds Sutherland (US) LLP

Merck and International Indemnity v ACE (et al.): war exclusion clauses in an age of cyber warfare

Companies should be aware that, as a result of increasing geopolitical instability, there is a heightened risk of cyber-attacks. Particularly in light of the Merck case, they should therefore consider closely examining the...more

Ervin Cohen & Jessup LLP

Does your Insurance Policy Protect you from Email Spoofing?

Your CFO or accounts payable clerk receives a legitimate-looking email supposedly from the company’s president authorizing a wire transfer to a vendor or business partner. In reliance on that email, the company’s bank is...more

Blank Rome LLP

The War Exclusion and State-Sponsored Cyberattacks: The Battle Is Won but Is the War Over?

Blank Rome LLP on

Sovereign nation states have been behind (or suspected of being behind) some of the worst cyberattacks. When a cyberattack has state involvement, the inevitable question is whether it constitutes an act of war. The answer can...more

Bilzin Sumberg

New Jersey Court Rules “Acts of War” Insurance Policy Exclusion Inapplicable to Russian Malware Attack

Bilzin Sumberg on

Pharmaceutical giant Merck won a major victory over its insurance carrier in New Jersey Superior Court recently. Merck’s victory means its carrier is liable to pay out up $1.4 billion to Merck for alleged losses arising out...more

Woodruff Sawyer

Ransomware Attacks Continue to Cause More Underwriter Scrutiny

Woodruff Sawyer on

Continued widespread cyber attacks have leaders in just about every industry wary and watchful, and insurance underwriters are no exception. Given the increase in claims from recent ransomware attacks, cyber insurers are...more

Bilzin Sumberg

Cyber Insurance Carriers, Increasingly Targeted by Hackers, Impose New Coverage Conditions

Bilzin Sumberg on

Insurers that offer coverage for cyberattacks find themselves playing both offense and defense lately. As they await possible action by Congress to enact federal cybersecurity legislation, the insurance industry has gone on...more

Robins Kaplan LLP

Ransomware Attack Results In Covered Physical Loss Or Damage

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A Maryland Federal Court Examines A Coverage Dispute Regarding Whether An Insured Had Experienced A Covered Loss To Its Computer System Following A Ransomware Attack. ...more

Hinshaw & Culbertson LLP

Insurers Take Steps to Reduce Silent Cyber Exposure

As cyber risks continue to proliferate, issues concerning coverage for those exposures under non-cyber or "traditional" property and casualty policies are creating uncertainty for both the insurance industry and for...more

Robinson & Cole LLP

Data Privacy + Cybersecurity Insider - August 2019 #4

Robinson & Cole LLP on

We have definitely seen an uptick in the number of ransomware attacks against municipalities around the country. Thus far, the attacks have been against single cities, towns, and court systems, and recently against a...more

Robinson+Cole Data Privacy + Security Insider

Court Finds That Insurer’s Quote Implied Coverage for Computer Hacking Losses

In an interesting case from Indiana, a court recently ruled that language in the insurer’s “quotes” for coverage in a crime policy led the insured to believe that losses for computer hacking would be covered under the policy...more

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