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One Beacon Files DJ: No CGL Coverage for Retailers in Zip Code Disputes

Posted in Coverage, Credit Card Transaction, Damages, Declaratory Judgment Litigation, Insurance

OneBeacon  America Insurance Company filed a DJ against retailers Urban Outfitters and Anthropologie in federal court in Pennsylvania on September 10, 2013.  The retailers have been sued in “Zip Code Actions” brought by consumers alleging that the stores request zip codes when completing credit card transactions, a practice that allegedly violates consumer protection and privacy laws in the District… Continue Reading

Liberty Mutual Sues Schnuck Markets: Asserts No Coverage for Data Breach under CGL Policy

Posted in Coverage, Declaratory Judgment Litigation, Insurance

Liberty Mutual has sued Schnuck Markets, denying indemnification obligations under a CGL policy for Schnuck’s data breach involving 2.4 million credit and debit cards. In April 2013 Schnuck reported a data breach involving approximately 2.4 million credit and debit cards used at 79 grocery stores that occurred between December 2012 and March 29, 2013.   Since then, 8 lawsuits (including class… Continue Reading

Cyber Risk and Professional Firms

Posted in Business Practices, Coverage, Cyber Breach, Cyber Costs, Damages, Data Breach, Insurance

Earlier today Kari Timm moderated a panel on cyber risk and insurance for law firms and other professional firms during the 2013 PLUS Professional Risk Symposium.  To see a short video discussion on cyber risks for professional services firms from the 2013 PLUS Professional Risk Symposium please visit the PLUS Blog (http://plusblog.org/2013/04/10/cyber-risk-and-professional-firms/).

Follow the Money: No Homeowners Coverage for Employee Sued Individually for Data Theft

Posted in Data Breach, Illinois, Insurance

The Seventh Circuit Court of Appeals ruled on January 11, 2013 that there is no coverage under a homeowner’s policy for an employee of an accounting firm who had a CD stolen from her car. The CD contained financial information and other PII of 30,000 members of a pension fund and client of the accounting… Continue Reading

What Will 2013 Bring in Privacy/Insurance Issues? (Part III…and final)

Posted in Attorney Client Privilege, Insurance, Privacy

Looking further at the crystal ball and what may catch our attention in 2013, let’s consider Privilege. Assume a breach of PII from an organization.  The internal investigation team is likely to consist of  in-house counsel, an IT group and a “C-suite” executive. Are communications with in-house counsel privileged? As with most things, it depends – on the jurisdiction and whether the communications… Continue Reading

What Will 2013 Bring in Privacy/Insurance Issues? (Part II)

Posted in Cloud Computing, Insurance

Last week we looked at three issues we believe will be prominent in 2013: consequences of Hurricane Sandy, cyber terrorism and federal legislation.  In Part II of our analysis, we look at an additional issue we expect to be important in 2013: The Cloud.    One commentator described the cloud’s development path as entering its “teenage” years in 2013.  This seems about right. … Continue Reading

What Will 2013 Bring In Privacy/Insurance Issues? (Part I)

Posted in Cyber Terrorism, Federal Legislation, HIPAA, Insurance

Predicting the future is a risky business (not entirely unlike insurance) but here are a few of the issues we think will be significant  in 2013. 1. Hurricane Sandy: With acknowledgement of the human suffering this disaster caused, we believe it also will impact cyber/privacy and insurance in several ways.  First, it should provide a heightened awareness of… Continue Reading

Privacy Breaches & Insurance: A Year in Review and What Lies Ahead in 2013

Posted in Coverage, Cyber Breach, Insurance

 CYBER AND PRIVACY BREACHES: A YEAR IN REVIEW AND WHAT LIES AHEAD FOR 2013 Join us on December 4, 2012 from 10:00 – 11:00 C.S.T. for “Cyber and Privacy Breaches: A Year in Review and What Lies Ahead for 2013, ” the final 2012 session of our Webinar Series on Cyber and Privacy Breaches and their Insurance… Continue Reading

Behind the Curtain: Just whose risks are being insured?

Posted in Business Practices, Coverage, Cyber Breach, Data Breach, Insurance, Reinsurance

In today’s challenging economy, it is hard to turn away new business, whether from a client who provides a law firm with steady work, or a broker who contracts for investment services or a health care organization that contracts with a nursing registry.  But what happens when the new client demands that as part of… Continue Reading

Disclosure of Cyber Risks & Insurance Required by SEC

Posted in Business Practices, Corporate Governance/Reporting, Coverage, Cyber Breach, Insurance, SEC

Over the past few years, cyber risks slowly have become more of an issue for C-suite executives and corporate boards.  However, new guidelines issued by the SEC requiring that companies disclose such risks and relevant insurance coverage will likely push cyber security and insurance onto the C-suite agenda quicker than ever. Acknowledging that cyber attacks are becoming… Continue Reading

Reminder: Webinar Series on Cyber & Privacy Breaches & Their Insurance Impacts Starts October 4

Posted in Breach Notification Laws, Coverage, Insurance, Privacy, Privacy Legislation

Our webinar series on cyber and privacy breaches and their insurance impacts begins on October 4, 2011 at 10:00 C.S.T. with the introductory presentation Cyber Data: If You Use It, Don’t Lose It: An Introduction to Cyber and Privacy Breaches and Their Insurance Impact. You can still register here for this complimentary webinar. See you… Continue Reading

Medical Device Hacking Prompts Concern

Posted in Hacking, Healthcare, Insurance

Jay Radcliffe sent chills down the spines of many when he announced during the Black Hat conference that he was able to hack into his own insulin pump and adjust the dosage levels or even turn it off.  All he needed was the pump’s serial number.  Fellow analyst Brad Smith warned that worms and viruses… Continue Reading

Hartford Denies Coverage for Song-Beverly Claims

Posted in Class Action, Coverage, Credit Card Transaction, Insurance, Privacy Legislation, Retail

The Hartford Fire Insurance Company has filed at least two suits against insureds seeking a declaration that CGL policies it issued do not provide coverage for Song-Beverly claims filed in the wake of the Pineda decision. Hartford filed suits in Illinois federal court against Euromarket Designs, Inc. (a/k/a Crate & Barrel) and in New Jersey federal… Continue Reading

Mobile Apps Developer and its President Fined $50,000 for Violating Children’s Privacy Rights

Posted in FTC, Insurance, Privacy Legislation

Mobile app developer W3 Innovations, LLC and its President Justin Maples have agreed to pay $50,000 to settle a complaint by the FTC for alleged violations of the Children’s Online Privacy Protection Act (“COPPA”).  COPPA dictates a website operator’s responsibilities for protecting the privacy and online saftey of children.  Among other things, it requires that… Continue Reading

Zurich Denies Coverage for Sony PSN Hacking Claims & Files Suit

Posted in Class Action, Coverage, Cyber Breach, Insurance

The hits just keep coming for Sony.  In addition to defending 58+ class action lawsuits in the U.S. and Canada, and responding to numerous governmental inquiries into the hacking of its PlayStaion Network and Sony Online Entertainment earlier this year, Zurich has filed suit against Sony seeking a declaration that various Zurich policies do not provide coverage for the… Continue Reading

Ponemon Institute Reports 56% Increase in Cost of Cyber Crime

Posted in Cyber Breach, Cyber Costs, Insurance

The costs associated with cyber crime have increased significantly over the past year according to the Second Annual Cost of Cyber Crime Study the Ponemon Institute released earlier this month.  The total annualized cyber crime cost for those organizations that participated in the study ranged from $1.5 million to $36.5 million, with a median cost of $5.9 million, an… Continue Reading

Wellpoint Settles with Indiana AG Over Data Breach

Posted in Breach Notification Laws, Data Breach, Insurance

Health insurer WellPoint Inc. has entered into a settlement agreement with the Indiana Attorney General resolving the first lawsuit the AG filed under Indiana’s breach notification statute. In February 2010, a consumer notified Wellpoint that insurance applications containing personal information were accessible on Wellpoint’s website.  The consumer reportedly contacted Wellpoint again on March 8, 2010. … Continue Reading

Expert: Demand for Cyber Insurance On The Rise

Posted in Breach Notification Laws, Cyber Breach, Insurance

Hiscox’s James Whetstone, senior VP and U.S. technology and privacy manager, discusses the increasing demand for cyber insurance even before the recent spate of high-profile breaches.  Mr. Whetstone’s interview with My New Markets.com, sponsored by the Insurance Journal, can be found here: Expert Assesses Cyberinsurance Market: Demand, Prevention, Recovery

Ponemon Reports Significant Increase in Cyber Attacks

Posted in Cyber Breach, Insurance

The Ponemon Institute study “Perceptions About Network Security” reports a significant increase in cyber attacks, both in terms of frequency and severity. Ponemon surveyed 583 IT and IT security practitioners in the United States.  More than half of those surveyed are employed by organizations with 5,000+ employees.  Seventy-eight percent of the respondents reported that their company had… Continue Reading

“Electronic Aggression” Excluded from Umbrella Coverage

Posted in Coverage, Insurance

The American Association of Insurance Services (AAIS) is excluding coverage for “electronic aggression” under its Personal Umbrella Policy program.  The revised form is expected to be effective in most states by October 1, 2011.  The AAIS is a national advisory organization that develops policy forms and rating information used by about 700 PC insurers throughout the U.S. “Electronic aggression,” … Continue Reading

Cyber Breach Incidents Increasing Frequency and Damage

Posted in Coverage, Cyber Breach, Insurance

Each day there are new data breaches resulting in lawsuits and loss.  Individuals are losing PII, credit card information,  and their trust in the security of their information.  Just this past week Ian Paul of PCWorld posted a recap of the larger risks in the past few months. It is impressive to think that Epsilon (which included over a hundred… Continue Reading

Privacy of Pharmaceutical Records Challenged

Posted in Breach Notification Laws, Cloud Computing, Coverage, Cyber Breach, Health Records Privacy, Insurance, Privacy, Privacy Legislation, Reinsurance

When a pharmacy fills a prescription, it records the drug, dosage, prescribing physician, age and gender of the patient.  The pharmacy sells this information to “data miners” who compile reports about the physician’s prescription habits.  The data miners then sell their research to pharmaceutical companies, who use the data for target marketing to doctors most likely to… Continue Reading

Companies Still Not Buying Cyber Insurance

Posted in Insurance

According to a recent survey by Towers Watson, most companies still are not purchasing network liability insurance.  Towers Watson 2011 Risk & Manager Survey   The survey of   164 responding companies taken between March and April 2011 report that a surprising majority, 73%,  do not have cyber risks coverage despite the increasing number of reported breaches.  The reasons… Continue Reading