Many of you probably saw the news this past week that Target has filed a lawsuit against one of its insurers over losses the company sustained in connection with the company’s 2014 data breach. The Target lawsuit is the latest in a series of high profile insurance battles in which companies are seeking to recoup losses resulting from cybersecurity incidents. However, as my friend, colleague, and Cyber insurance maven Mickey Estey pointed out to me, in its lawsuit Target is in fact not seeking to recover its claimed losses under a cyber insurance policy; rather, in its latest lawsuit, Target is seeking to recover for certain of its losses under its general liability policy. The Target lawsuit is only the latest in a series of high-profile insurance disputes in which companies that have sustained losses from a cybersecurity event are seeking coverage under a variety of different types of policies.
Continue Reading Seeking Insurance for Cybersecurity-Related Losses

One of the more challenging issues businesses must confront as wrongdoers have turned Internet tools into criminal devices has been the rising threat of payment instruction fraud, or, as it is sometimes called, social engineering fraud. Along with these crimes have come vexing questions of insurance coverage for the ensuing losses. Courts have struggled to determine whether or not payment instruction fraud losses are covered under Crime policies. A recent case in the Southern District of New York raises the question whether a payment instruction fraud loss is covered not under a Crime policy but rather under insurance policy containing both E&O and Cyber coverages.
Continue Reading Insurer’s Bid to Dismiss Complaint Seeking Coverage for Payment Instruction Loss Denied

When the European Union’s updated General Data Protection Regulation (GDPR) went into effect on May 25, 2018, media reports focused on the potentially massive fines that the regulation authorizes – the regulation authorizes fines of up to €20 million or 4 percent of a company’s annual worldwide revenue, whichever is higher, for noncompliance with the regulation’s strict data collection and use requirements. The possibility of regulatory fines of this magnitude immediately raised the question of whether or not insurance is available to protect companies against the huge financial exposure. The answer to this question, it turns out, is complicated.
Continue Reading Are GDPR Fines and Penalties Insurable?

david_bergenfeld1In the current world, cyber security is critical for every organization. Cyber insurance is an important part of every organization’s cybersecurity program. In the following guest post, a Senior Associate in D’Amato & Lynch, LLP’s Fidelity Bond Practice Group, examines how business can best match their cyber insurance to their cyber security needs. I would like to thank David for his willingness to allow me to publish his article as a guest post. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is David’s guest post.
Continue Reading Guest Post: Matching Business Models and Processes with Cybercrime Insurance Programs

David Bergenfeld

In the following guest post, David Bergenfeld, a Senior Associate in D’Amato & Lynch’s Fidelity Bond Practice Group, takes a look at the key judicial decisions during the third quarter of 2016 interpreting cyber and commercial crime insurance policies. I would like to thank David for allowing me to publish his article. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is David’s guest post.
Continue Reading Guest Post: Recent Trends in Interpreting Cyber and Commercial Crime Insurance

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Stephen O’Donnell

Cyber liability insurance is a relatively new product and many of the terms and conditions found in cyber-liability policies are as yet untested in the courts. In this guest post, Stephen O’Donnell of the Steptoe & Johnson law firm takes a look at two particular standard features of the cyber liability insurance policies, the retroactive date and policy inception date exclusions, and the potential for these exclusions to preclude coverage for the very kind of exposures that are the reasons most purchasers buy the insurance.

I would like to thank Stephen for his willingness to publish his article on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is Stephen’s guest post.


Continue Reading Guest Post: Cyber-Liability Insurance and the Retroactive Date Exclusion

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David Bergenfeld

In the following guest post, David Bergenfeld, a Senior Associate in D’Amato & Lynch, LLP’s Fidelity Bond Practice Group, takes a look at key court decisions during the first quarter of 2016 analyzing cybercrime insurance.  I would like to thank David for his willingness to publish his article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is David’s guest post.
Continue Reading Guest Post: Fidelity Bonds and Cybercrime Insurance: 2016 First Quarter Update

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David Bergenfeld
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Laura Lang

This past year was a very eventful one in the world of fidelity bond, commercial crime, and cybercrime coverages. In the following guest post, David Bergenfeld of the D’Amato & Lynch law firm’s Fidelity Bond Practice Group, and Laura Lang, Esq., take a look at the important developments during 2015 regarding these coverages. I would like to thank David and Laura for their willingness to publish their article as a guest post on this site. I welcome guest post submissions from responsible authors of topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is David and Laura’s guest post.
Continue Reading Guest Post: Fidelity Bonds and Cybercrime Policies: 2015 Year in Review