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Tag Archives: insurance

Data Breach Insurers: Learning from Product Recall

Posted in Attorney Client Privilege, Product Recall Similarities

Data breach claims are often referred to as the new EPL claims: high volume, high intensity, low impact on most insurers’ bottom line.  But a more apt analogy is product recall litigation. Product recall and data breach claims have a lot in common: they involve a problem with a major “brand,” whether cars, food or confidential data; the problem is often discovered… Continue Reading

Data Breaches in Schools Should Not Be Dismissed

Posted in Cyber Breach, Education, Schools, Uncategorized

There is an increasing number of reported breaches in our school systems.  Just this past July: •Ferris State University in Michigan reported that PII for 39,000 students and employees was briefly available after an unauthorized entry into its system. Ferris State Breach •high school in North Carolina’s Guildford County inadvertently disclosed the PII of 456 students… 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 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

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

Congressional Task Force Issues Report on Cybersecurity

Posted in Federal Legislation

On October 5, 2011 a Congressional Task Force Report was published containing recommendations for handling security issues in four areas: (1) critical infrastructure and incentives; (2) information sharing and public-private partnerships; (3) updating existing cyber security laws; and (4) legal authorities.  The general point from the report is that Congress should provide a variety of incentives to encourage… Continue Reading

Cyber Data: If You Use It, Don’t Lose It: An Introduction to Cyber and Privacy Breaches and Their Insurance Impact

Posted in Webinar

If you were unable to make our first webinar: “Cyber Data: If You Use It, Don’t Lose It: An Introduction to Cyber and Privacy Breaches and Their Insurance Impact,” please feel free to contact us for the slides and a link to the recorded webinar. Our Webinar Series on Cyber and Privacy Breaches and Their… 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

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

Reinsuring Cyber Risks

Posted in Cyber Breach, Damages, Reinsurance

Many of the underwriting and wording considerations that direct insurers bring to cyber risks  apply to reinsurers as well.   But there are also issues that are unique to reinsurers.  We will explore some of these issues in periodic postings.   Click here for Reinsuring Cyber Risks: Be Careful Out There , our analysis of reinsurance wording issues and… Continue Reading

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

Sony Insurers Should Expect a Busy Year

Posted in Cyber Breach, Damages, Retail, Uncategorized

Sony insurers are going to have a busy year.  Sony is estimating loses of $3.2 billion [pdf] from the Earthquake damage and Sony’s continued troubles with hackers.  Since our last post we have learned: The hacker used Amazon’s Elastic Computer Cloud, or EC2, service to attack SOE. May 17, Sony’s chief executive, Howard Stringer, claimed… Continue Reading