Tech Risk Report

Protecting Innovative Companies Against 21st Century Risks

The consequences of a data breach can be far-reaching. While the initial issues in the wake of a breach often involve investigation into the cause of the breach and sending notification to those affected (both of which are covered by most cyber insurance policies), coverage for certain types of third-party claims stemming from cyber breaches may be available under Commercial General Liability (“CGL”) insurance policies. CGL insurance policies provide coverage for claims of “Bodily Injury,”…
Can an intentional attack carried out through social media trigger liability coverage? A recent Pennsylvania case found potential coverage under a homeowner’s policy for a case of cyber bullying that ended in the suicide of the victim. The court found that the intentional actions of the insured’s son constituted an accident, and therefore an occurrence, because the claim in part alleged negligence and because the actions of the victim were not necessarily expected from the…
In my previous blogs, I pointed out that security breaches are like death and taxes (i.e., unavoidable), and that insureds simply need a product that will pay for any losses from the inevitable security breaches. I also pointed out that insurance companies could help by certifying security products that were good enough to guarantee a payment under the companies’ policies if there were a breach. The recent Mondelez case points out why insureds often wonder…
Biometric Privacy Lawsuits In early 2019, the Illinois Supreme Court opened the floodgates for advancing private causes of action under the state’s 2008 Biometric Information Privacy Act (“BIPA”), 740 ILCS 14 et seq. In Rosenbach v. Six Flags, the Court found that no proof of actual injury or damage beyond technical infringement was necessary to state a claim under the BIPA. Now, Illinois courts are seeing a wave of BIPA class action lawsuits, even…
The entire insurance industry is suddenly abuzz about the rarely discussed “war exclusion.” A standard provision in most policies that excludes claims caused by a hostile or warlike action in time of peace or war, usually by a military or a government/sovereign power, is all the rage. Why? The billions of dollars of damages caused by the NotPetya virus and insurers attempts to avoid paying them.…
Should you stress if the insurance company issuing the policy that is supposed to be protecting your business—whether in a certificate of insurance you received from a third party or within your own insurance portfolio—is “non-admitted”?  As discussed below, there is no need to sweat. An “admitted” insurance company is one that has been approved by a state’s department of insurance.  This generally means that the insurance company must file policy forms, underwriting guidelines, and…
The European Union’s sweeping Global Data Protection Regulation (GDPR), which took effect on May 25, 2018, dramatically expanded the compliance obligations of companies collecting or using European Union citizens’ personal information. It also substantially increased regulatory exposure for companies due to its strict requirements and draconian penalties for non-compliance, including potential fines of greater than 20 million Euros or 4% of a company’s annual worldwide revenue. GDPR Art. 83, § 5. See Perkins Coie’s GDPR
Companies engaged with digital assets, particularly those companies without a track record, are finding it to be a struggle to procure broad directors & officers (“D&O”) liability coverage.  Specifically, insurance underwriters are spooked by the regulatory uncertainty surrounding digital assets, particularly Initial Coin Offerings (“ICOs”), which have emerged as an alternative to traditional equity offerings, e.g., the sale of stock in a venture.  The reality, however, is that many companies engaged with “coins” or “tokens”…
Many businesses rely upon social media to raise awareness and enhance visibility of a new product or new line of business.  Social media platforms such as Facebook are often used to generate buzz around an opening or a launch before it takes place.  Anticipatory use of social media, however, can complicate insurance coverage if the right policies are not already in place.  The Idaho Supreme Court recently upheld the denial of coverage to a business…