Policy Terms, Cybersecurity, Corporate Counsel

Square Peg, Round Hole: 6th Circuit Affirms Finding That Cyber Claims Are Not Covered by CGL Policies

Carlton Fields on 2/24/2025

In Home Depot Inc. v. Steadfast Insurance Co., Home Depot learned the hard way a rule every DIY enthusiast knows: measure twice, cut once. It appears Home Depot’s measurements were off when it sized up its insurance needs,...more

Federal Court Rules “Unauthorized Network Access Exclusion” Precludes Coverage for $1.3M Payment From Hacker’s Fraudulent Email

Carlton Fields on 7/18/2022

The U.S. District Court for the Eastern District of Pennsylvania ruled that an insurance policy issued by Federal Insurance Co. excluded coverage for the transmission of $1.3 million by the insured in response to an email...more

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

Cooley LLP on 2/3/2022

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

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

Blank Rome LLP on 1/27/2022

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

Ransomware Attack Results In Covered Physical Loss Or Damage

Robins Kaplan LLP on 4/21/2020

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

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

Carlton Fields on 3/6/2020

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

Insurers Take Steps to Reduce Silent Cyber Exposure

Hinshaw & Culbertson LLP on 2/11/2020

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

Don’t Expect Commercial General Liability Insurance Policies to Protect Against Cyber Breach or Crime

Lowndes on 10/11/2018

Almost a year after Middle District Judge Mary Scriven’s instructive decision in Innovak Int’l, Inc. v. Hanover Ins. Co. in which she declined to hold that a traditional commercial general liability (CGL) policy, as drafted,...more

Will Insurance Provide Coverage for GDPR Fines?

Robinson+Cole Data Privacy + Security Insider on 10/1/2018

As many of our readers know, the General Data Protection Regulation (GDPR) imposes significant obligations and responsibilities on entities with regard to data protection and privacy for all individuals within the European...more

Testing the Limits III – Cyber Coverage Litigation Focuses on Computer Fraud Losses

Troutman Pepper Locke on 9/13/2018

Fraudsters deploy different computer-related techniques but toward the same end – “gaming the system” for their own financial gain. Some victims turn to insurance for recovery. Four recent federal appellate decisions reveal...more

Second Circuit Holds Phishing Email Using PHP Script is Covered “Computer Fraud”

White and Williams LLP on 7/9/2018

Scams from business compromise emails (BECs) have been labeled by the FBI as a “$5 billion” problem. Sometimes known as “CEO Fraud,” BECs are where an email, purportedly coming from a high-ranking company official or vendor,...more

Eleventh Circuit Rules There Is No Coverage under Crime Policy’s Computer Fraud Component

Pillsbury - Policyholder Pulse blog on 5/22/2018

Remember the “good” ol’ days when the run-of-the-mill theft involved someone physically taking something tangible? That is so 20th century. Now, thieves and fraudsters are able to use computers and the internet to carry out...more

CGL Coverage for Cyber Data Breaches: Court Finds No Coverage unless the Policyholder Itself Publishes the Private Information

Blank Rome LLP on 3/6/2018

As cybersecurity incidents continue to mount and as the issue of data security becomes increasingly important and a source of potential liability, companies should consider whether their standard commercial general liability...more

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