Articles Posted in Cybersecurity

Published on:

While our brains may feel like they are fused with the computers, smart phones, and other devices we use on a constant basis, a direct connection between these machines and our brains is still (mostly) a thing of the future. So, even as companies continue to strengthen and refine their network security systems against cybercrime, the human brain can remain a weak link for criminals to Mad professor laboratory illustrationexploit. Unfortunately for some policyholders, this time-honored tactic of targeting the human element involved with a technology may actually fall right into a gap in companies’ insurance coverage, as highlighted in the Fifth Circuit’s decision this month in Apache Corporation v. Great American Insurance Company.

 

Continue reading →

Published on:

Global-ishInsurance is not only a risk transfer tool, but also a valuable asset. Certain coverages, however, are not purchased or pursued by multinational companies transacting business in the United States because there are nuanced differences between international and U.S. insurance programs and law. These companies, often with global offices, will be best served by having counsel experienced in such nuances conduct a diagnostic review of their insurance policies. Not only may potential coverage gaps be identified, but a company will be better able to plan ahead and negotiate more favorable coverage terms before a loss arises.

Continue reading →

Published on:

Phishing is a criminal hacker’s favorite sport, and for good reason. It’s a tried and true way to land the big one, over and over again. Whether using a spoofed bank website and stolen email addresses to trick customers into divulging account information, sending email messages purporting to be from a senior company official to deceive employees into providing personal health records, or posing as a trusted vendor and transmitting wire transfer instructions to fraudulently divert funds, hackers are reeling in the catch and making it look easy.

Malware phishing data concept

But a well-managed company should have sophisticated safeguards in place. And if these fail, there is insurance coverage, right? The prudent policyholder buys all kinds of insurance: It has up-to-the minute “Cyber” coverage. It has Crime and Fidelity coverage with Computer Fraud riders. It has Professional Liability coverage. And of course it has regular old Commercial General Liability and Property coverage. Surely it’s covered for this type of fraud. Or is it?

While seeming to offer products that respond to the latest risks, insurers often provide limited coverage and seek to exclude the most obvious and inevitable losses. A series of recent cases highlight some of the biggest holes in the insurance safety net.

Continue reading →

Published on:

Just as the famous 1897 New York Sun editorial playfully reassured the skeptical eight-year-old Virginia, so too a recent FCyber2ourth Circuit decision should reassure policyholders in Virginia (and nationwide). Despite insurers’ skepticism, general liability insurance may in fact cover cyber events.

Continue reading →

Published on:

In the client alert The “Panama Papers” and the Secret World of Shell Corporations, Insurance attorneys Joseph Jean, Alexander Hardiman and Matthew Putorti along with their colleagues Carolina Fornos, Mark Hellerer, Maria Galeno, William Sullivan, Nancy Fischer, Nora Burke and Danielle Vrabie discuss a leak of 11.5 million documents from a law firm in Panama that may implicate politicians, criminals and celebrities in sheltering of fortunes in offshore tax havens through the use of shell companies. In light of these events, financial institutions and other entities may need to consider whether they are implicated, how to assess the risks, how to minimize exposure, if any, and whether insurance coverage is available.