News & Analysis as of

Cyber Insurance Denial of Insurance Coverage

J.S. Held

Strategies to Avoid Cyber Insurance Claim Challenges: Part II

J.S. Held on

In Part I of this series, we posed a series of questions to consider when purchasing cyber insurance. Our approach was deliberate: the right questions help get you the right insurance to address cyber risks facing your...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

Kohrman Jackson & Krantz LLP

Coverage Challenges in Ransomware Claims: Cyber Insurance Policies and Trends in Denials

A consistent pattern emerges in data breach and cyber-attack cases when companies turn to their insurers for coverage after such incidents. Whether they possess specialized cyber insurance or not, insurers often decline...more

Perkins Coie

Washington State’s New My Health My Data Act Will Likely Result in Insurance Coverage Disputes

Perkins Coie on

Washington state recently passed the My Health My Data Act (the Act), which will almost certainly lead to an explosion of consumer lawsuits and follow-on insurance coverage disputes. The measure is intended to protect...more

Wiley Rein LLP

No Coverage for Consequential Losses Stemming from Computer System Failure

Wiley Rein LLP on

A Texas federal district court, applying Texas law, has held that a cyber insurer did not need to cover losses incurred by its insured resulting from a system failure incident, finding that those losses were consequential and...more

Farella Braun + Martel LLP

Using Multi-Factor Authentication as a Prerequisite to Cyber Liability Coverage

Multi-factor authentication (MFA) is more than an annoying popup or text message when logging onto a company’s website or platform. Not only is using MFA a sound security practice and good business, it is frequently becoming...more

Farella Braun + Martel LLP

Maximizing Your Insurance Coverage for Data Privacy Liability

With news of massive data breaches making headlines in recent years, the handling of personal data has become a focus for legislators and regulators around the world. Compliance with data privacy regulations such as the...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

Farella Braun + Martel LLP

Continuing Use of CGL Policies to Cover Data Breach Losses

Our lives and the products and devices we use become more dependent on data by the day. As a result, cyberattacks and data breaches present everchanging risks to companies and individuals, and the importance of applicable...more

Miller Nash LLP

An Alaska Court Goes Fishing for Insurance, Hooking Another Policyholder Win in a Phishing Scam Case

Miller Nash LLP on

As an update to our March 8, 2022 blog post discussing coverage for phishing scams in the context of Ernst & Haas Mgt. Co. v. Hiscox, Inc., 23 F.4th 1195 (9th Cir. 2022), a new Alaska case relied on Ernst & Haas to find...more

Farella Braun + Martel LLP

The War Exclusion in a Time of War

The “war” exclusion has gotten more attention over the past couple of weeks in light of Russia’s invasion of Ukraine. For good reason. This exclusion, common in property and liability policies alike, typically eliminates...more

Epiq

Cyberside Chats: There is a war in Europe. What does that mean for your cyber insurance policy?

Epiq on

Jerich Beason & Whitney McCollum speak on this Cyberside Chat to discuss the recent Merck & Co. cyber insurance win and how this impacts future wars fought with cyber weapons such as the conflict in Ukraine. This case sets a...more

Ervin Cohen & Jessup LLP

9th Circuit says Computer-Fraud Policies May Cover ‘Spoofing’

Consider the following two scenarios resulting in identical losses, but potentially two entirely different insurance coverage outcomes. In the first instance, a thief hacks, or gains unauthorized entry, into an insured’s...more

Zelle  LLP

COVID Rulings May Support Ransomware Insurance Denials

Zelle LLP on

Ransomware attacks were already on the rise prior to the COVID-19 pandemic, but the prevalence of such cyberattacks substantially increased during the pandemic due, in part, to additional security risks associated with the...more

Blank Rome LLP

Is There a Glitch in Insurance Coverage for Social Engineering Scams?

Blank Rome LLP on

Social engineering scams seeking to deceive companies into making wire transfers to fraudulent bank accounts continue to plague companies. According to the FBI, social engineering fraud costs businesses billions of dollars...more

Carlton Fields

Ransomware Attack Replacement Costs Are Covered “Direct Physical Loss or Damage” Under Standard Business Owner’s Policy, According...

Carlton Fields on

A Maryland federal court recently weighed in on the still-murky world of insurance coverage for cybersecurity losses, finding replacement costs necessitated by a ransomware attack were “direct physical loss or damage” to a...more

Farella Braun + Martel LLP

Time to Check Your Cyber Insurance

Now that the CCPA is in effect, some companies will need to revise their policies. The cyber insurance markets are beginning to adapt to the new California Consumer Privacy Act (CCPA) which went into effect on January 1. ...more

Lowenstein Sandler LLP

Fintech Company Secures Indemnity Coverage Under Professional Liability Policy for Fraudulent Funds Transfer Claim

Lowenstein Sandler LLP on

What You Need To Know: - Recent case law is trending favorably for policyholders to secure coverage for computer fraud claims under a wide array of insurance policies. - Because several types of policies may be...more

Zelle  LLP

Conflicts in Circuits’ Approach to Email Scams Hold Lessons

Zelle LLP on

With unprecedented activity online, cybercrime is growing in frequency, sophistication and aggregate effect. Despite the increased visibility of cybercrime, cybersecurity continues to lag behind this curve. Cybercriminals...more

Pillsbury - Policyholder Pulse blog

Cyber Coverage by any Other Name Can Smell as Sweet. Maryland Court Rules Traditional Property Policy Covers Loss of Data and...

Cyberattacks are an increasingly frequent and costly risk faced by almost every business today. While the availability and scope of cyber-specific insurance has developed exponentially over the past few years, it is important...more

Farella Braun + Martel LLP

Another Federal Circuit Finds Phishing Loss Covered Under Crime Policy

Companies of all sizes have fallen victim to attacks whereby fraudsters will use deceptive communications, such as spoofed emails, to trick an employee into transferring money into the fraudsters’ control. While these...more

Akin Gump Strauss Hauer & Feld LLP

Issues to Consider when Evaluating Cyber Coverage in Light of the CCPA and Other State Privacy Laws

With the expansion of privacy legislation—from the General Data Protection Regulation (GDPR) in Europe to the coming California Consumer Privacy Act (CCPA) in the United States—cyber liability insurance is taking on increased...more

Woods Rogers

Cyber Liability Insurance For Small To Medium Size Businesses – Are You Covered?

Woods Rogers on

Today, it seems hardly a month passes without a report of another business falling victim to a data breach. Over the past few years, some of the largest and well-known companies such as Equifax, Target, Home Depot, TJ Maxx,...more

Skadden, Arps, Slate, Meagher & Flom LLP

Privacy & Cybersecurity Update - April 2019

In this month's Privacy & Cybersecurity Update, we examine several recent U.K.-related cybersecurity developments and the SEC's risk alert reminding investment advisers and broker-dealers to follow through on implementing...more

Skadden, Arps, Slate, Meagher & Flom LLP

Privacy & Cybersecurity Update - January 2019

In this month's edition, we examine cybersecurity-related state Supreme Court rulings in Pennsylvania, Vermont and Illinois; the Department of Health and Human Services' cybersecurity guidelines for the health care industry;...more

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