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On Tuesday, January 23, Lloyd’s of London and AIR Worldwide co-published a report regarding the financial fallout that could occur if a cyber incident or shutdown of a cloud computing provider happened in the United States. The report noted that losses could be around $19 billion with only about $3 billion being covered by insurance.[1]  The report also reveals that “[g]iven the state of the cyber insurance industry today, a cyber incident that…
On Tuesday, January 23, Lloyd’s of London co-published a report with AIR Worldwide highlighting the significant financial fallout that could occur in the event of a cyber incident or shutdown of a cloud computing provider in the United States, noting that losses could be to the tune of about $19 billion – of which only about $3 billion would be covered by insurance.[1]  The report calls attention to the rise in businesses’ integration…
On November 20-21, 2017, Tether, the company behind USDT – a digital token backed by fiat currencies like the dollar and euro – disclosed that a hack resulted in the loss of $30.95 million worth of tokens.1 Tether posted an announcement to its website November 19 reporting that a “malicious action by an external hacker” resulted in the coins being “removed from the Tether Treasury wallet” and “sent to an unauthorized Bitcoin address.”2 Tether is…
On November 20-21, 2017, Tether, the company behind USDT, a digital token backed by fiat currencies like the dollar and euro, disclosed that a hack resulted in the loss of $30.95 million worth of tokens. The Tether hack illuminates the privacy, reputational, financial and recovery risks associated with issuing, owning and storing digital currencies. These risks and events are likely to repeat themselves as more initial coin offerings (“ICO”) come to the market and the…
Since July 2017, national, regional and local businesses operating in Illinois have been hit with a virtual storm of class actions under the Illinois Biometrics Privacy Act (“BIPA”), 740 ILCS 14 et seq.  BIPA regulates how businesses may record and store biometric data from customers or employees, and these actions create the potential for significant losses, including the costs of defending class action litigation and potential awards of statutory damages. Defending, settling and paying judgments…
When is a person an “employee” under one insurance policy but not an employee under another?   Conflicting or inconsistent definitions across multiple policy lines issued to the same company can give rise to significant gaps in insurance coverage, as a recent opinion of the U.S. Court of Appeals for the Seventh Circuit instructs, Telamon Corp. v. Charter Oak Fire Insurance Co., Nos. 16-1205 & 16-1815 (7th Cir. March 9, 2017). Telamon hired Juanita Berry in…
The October 21, 2016 DDoS attack on the internet’s domain name system infrastructure underscores the need to consider cyberliability insurance coverage as a critical component of your company’s security and privacy breach response plan, and if your company carries cyberliability insurance, to ensure that your coverage will respond to a network business interruption, security breach or privacy event against or within your company or its vendors. To read more, please click here.…
The New York Court of Appeals, the state’s highest court, recently rejected an attempt to apply the “common interest doctrine,” an exception to the general rule that communicating privileged information to a third party waives the attorney-client privilege, to situations where separately represented parties communicate attorney-client privileged information in connection with transactions or other circumstances other than in anticipation of litigation. Ambac Assur. Corp. v. Countrywide Home Loans, Inc., No. 80, 2016 WL 3188989 (N.Y.…
In a ruling particularly meaningful to health care companies, who are responsible for patients’ protected, personally-identifiable information, the U.S. Court of Appeals recently upheld a lower court’s decision finding coverage under a healthcare company’s comprehensive general liability (CGL) policy.  When the health care company inadvertently made certain confidential medical records accessible to the public online over a three month period, the court determined that the “publication” requirement under the CGL policy had been met, thus…
Ransomware and malware could potentially cripple your company and personal networks. Our previous post, Companies can insure against cyber ransom, states, “Ransomware is a form of malicious software, or ‘malware,’ that encrypts information or aspects of an organization’s computer network, preventing authorized users from accessing it.” As online hackers become more advanced, your company and personal need for internet security is essential. Cyberliability insurance coverage should be considered as part of a comprehensive plan to…