News & Analysis as of

Cyber Insurance Policy Terms

Zelle  LLP

N.M. Cyber Ruling Will Spur Litigation As Coverage Remedy

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A June 16 appellate decision involving the construction of a cyberinsurance policy demonstrates a concerning lack of judicial understanding about the nature and scope of cyber liability coverage and implicitly incentivizes...more

Wiley Rein LLP

For the Record: Cyber Coverage “For” a Security Breach is Ambiguous under New Mexico Law

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The New Mexico Court of Appeals has held that cyber policy language affording coverage “for” a security breach was ambiguous and must be construed broadly to provide coverage for a breach of contract claim “because of,”...more

A&O Shearman

Insuring data breach liabilities – how different policies can stack up and the problem of late notification

A&O Shearman on

An English Court has recently decided that three insurance policies covering the same loss – data breach settlements arising from an incorrectly addressed email – provided a combined, cumulative limit of indemnity. While the...more

Integreon

Cybersecurity, Wire Fraud, and Attorney Liability: The Growing Risk Landscape

Integreon on

Wire transfer fraud is on the rise, and attorneys are increasingly becoming prime targets for cybercriminals. With billions lost annually to fraudulent transactions, legal professionals who fail to implement robust...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

Goodwin

Tips for Maximizing Your Cyber Insurance Program

Goodwin on

A strong cyber insurance program is a critical risk management tool for companies, regardless of size or industry focus. When properly crafted, cyber insurance should protect a company against the costs of investigating cyber...more

Woodruff Sawyer

Does Cyber Insurance Pay Out?

Woodruff Sawyer on

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

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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

J.S. Held

Strategies to Avoid Cyber Insurance Claim Challenges: Part I

J.S. Held on

Cyber risk is now a normal part of our personal and professional lives. When companies suffer a cyber incident, they often look to their insurance policy for coverage to help mitigate the financial exposure. Additional...more

K&L Gates LLP

CrowdStrike IT Outage: Wave of Business Interruption Claims Expected

K&L Gates LLP on

Businesses, public services, and computer users across the world faced disruption as a result of the major CrowdStrike information technology (IT) outage, which is being coined by many as one of the largest and worst cyber...more

Woodruff Sawyer

Q1 2024 Commercial Insurance Market: Competitive Cyber and D&O, Higher Casualty Premiums, and More Capacity in Property

Woodruff Sawyer on

Commercial insurance pricing trends in the first quarter of 2024 followed many of the same patterns as last year. Insurance buyers can still expect competitive premiums in D&O and Cyber despite several insurers publicly...more

Wiley Rein LLP

Insured Not Entitled to a Windfall Under Cyber Policy’s Business Interruption Insuring Agreement

Wiley Rein LLP on

In a win for Wiley’s client, the United States District Court for the Eastern District of Arkansas, applying Arkansas law, has held that a cyber policy’s business interruption coverage should not result in a windfall for an...more

Jenner & Block

Client Alert: The State of the Insurance Market for Cyber Incidents — Important Developments from 2023 and Looking Ahead in 2024

Jenner & Block on

As businesses have increasingly recognized the importance of obtaining insurance coverage specific to cyber incidents, so too have insurers increasingly recognized the risks inherent in providing such coverage - particularly...more

Lowenstein Sandler LLP

“Keeping Track” of Your Cyber (and Other) Coverage Part II

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On this episode of Don't Take No for An Answer, host, Lynda A. Bennett, Partner and Chair of Lowenstein’s Insurance Recovery Group, is joined by David Anderson, Vice President, Cyber Liability at Woodruff Sawyer, and Heather...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

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

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

Cooley LLP

Ninth Circuit’s Fraudulent Payments Coverage Ruling Has Implications for Cyber Insurance Purchasers

Cooley LLP on

In a decision with significant implications for policyholders seeking coverage for social engineering scams and cybercrime losses, the US Court of Appeals for the Ninth Circuit held in Ernst and Haas Management Company, Inc....more

Kennedys

What is Hostile or Warlike?: An in-depth look at the Merck war exclusion decision and its shortfalls

Kennedys on

On January 13, 2022, the Superior Court of New Jersey, Law Division, held in Merck & Co., Inc., et al. v. ACE Amer. Ins. Co., et al., No. UNN-L-2682-18, that the Hostile/Warlike Action Exclusion in various property policies...more

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