Most firms that provide technology services or products have insurance to protect them against the risk that a dissatisfied customer will bring a claim or a lawsuit against them for damages arising out of the company’s products or services. It is very likely that such firms purchase general liability insurance, which is an important product that covers many different risks, including property damage, bodily injury, advertising injury, and other business-related claims. Most importantly, general liability…

Tech Risk Report

Filling Out a Cyber Insurance Policy Application: Do Not Give Insurers a Material Misrepresentation Defense

By Robert P. Jacobs

November 4, 2019

As the risks associated with cyber liability continue to evolve, so do the insurance products that are theoretically meant to protect against those risks. As the insurance industry attempts to keep pace, the applications that insurers are using to capture the data they believe is necessary to underwriting these risks are also evolving and vary to a large degree. Regardless of whether an application is long or short or seeks information in generalities or in…

Tech Risk Report

Preparing for Data Breaches: Data Mapping, Response Team and Insurance

By Jim Davis & Bradley Dlatt

October 25, 2019

Data breaches are up significantly in 2019, exposing billions of confidential records and costing companies millions of dollars on average per breach. Security experts counsel their clients that data breaches are inevitable as even the largest, most secure systems may be breached. In spite of this environment, many tech companies are woefully unprepared to respond to a cyber intrusion, data breach, or other cyber-related event. Are you ready? As insurance coverage lawyers, we often…

Tech Risk Report

Watch Out for the Statutory/Governmental Exclusion and Any Restriction on Paying Ransom Demands for Malware Attacks

By Norton Cutler

October 15, 2019

This author has previously discussed the inevitability of security hacks and attempts to require companies holding third-party data to pay some type of damages to the alleged victims of a hack. Even though damage from such hacks is often hard to prove, those who claim to have been victimized and their lawyers, who often operate on contingencies, will continue to file lawsuits that often result in the imposition of at least defense costs and, at…

Tech Risk Report

Self-Driving Cars Coming to a Store near You!

By Jay Rossiter

October 8, 2019

Why is this technology so exciting? The National Highway Traffic Safety Administration (NHTSA) has noted that 94% of auto accidents are attributed to some form of human error on the part of drivers. In 2014, there were an estimated 1.25 million deaths worldwide due to vehicle crashes. There is a potential for autonomous vehicle technology to dramatically re-shape these statistics. The Insurance Institute for Highway Safety anticipates that there will be 3.5 million self-driving vehicles…

Tech Risk Report

Issues With Vendor Certificates of Insurance

By Catherine Del Prete

September 30, 2019

Your company receives a demand letter and you realize that the claim stems from a vendor’s product or service. What do you do next? The first step for most companies will be to review the operative contract for any indemnification provisions. Next on the list will be to review any certificates of insurance issued by the vendor. All too often, however, companies at this phase learn that they were never actually added as additional insureds…

Tech Risk Report

How Does Your Company Transfer Risk in Its Technology Transactions?

By John Hardin

September 19, 2019

Companies enter an array of technology transactions with third-parties that allow vendors access to the Company’s source code, customer data, employee information, cybersecurity measures, and other critical data and infrastructure. These relationships inevitably increase the potential of a cyber attack impacting the Company through an attack against the vendor.…

Tech Risk Report

Insurance and Mergers & Acquisitions

By Michael Sharkey

August 29, 2019

A merger, acquisition, or other corporate transaction can raise a number of issues for the insurance coverage of the parties involved. The transaction may affect the parties’ current coverage and their rights under their historic policies. The parties will want to specify clearly the intended interplay of other aspects of the deal, such as indemnities, with available insurance. And the parties may wish to consider purchasing various types of insurance for aspects of the deal…

Tech Risk Report

Recent Developments in Coverage for Email-Based Computer Fraud

By Jeff Bowen

August 22, 2019

As previously reported here, (Nov. 8, 2017), companies falling victim to electronic impersonation (“spoofing”) schemes have frequently turned to “computer fraud” coverage found in typical crime policies. In this type of fraud, someone impersonates a vendor, contract partner, or company executive via email or other electronic means, and directs the transfer of funds to an account connected to the fraudster. Courts adjudicating insurance coverage actions arising out of these schemes have reached quite disparate…

Tech Risk Report

Representation and Warranty Insurance Coverage for Corporate Transactions

By Michael Sharkey

August 12, 2019

It is becoming increasingly important for tech companies considering a merger, acquisition, or other corporate transaction to understand the use of Representation & Warranty Insurance (“R&W Insurance”). R&W Insurance is a type of insurance policy purchased in connection with corporate transactions; it covers the indemnification for certain breaches of the representations and warranties in the transaction agreements. It is designed to provide additional flexibility in addressing these obligations by, for example, reducing or eliminating the…

Tech Risk Report

Protecting Innovative Companies Against 21st Century Risks

Blog Authors

Technology E&O Insurance

Filling Out a Cyber Insurance Policy Application: Do Not Give Insurers a Material Misrepresentation Defense

Preparing for Data Breaches: Data Mapping, Response Team and Insurance

Watch Out for the Statutory/Governmental Exclusion and Any Restriction on Paying Ransom Demands for Malware Attacks

Self-Driving Cars Coming to a Store near You!

Issues With Vendor Certificates of Insurance

How Does Your Company Transfer Risk in Its Technology Transactions?

Insurance and Mergers & Acquisitions

Recent Developments in Coverage for Email-Based Computer Fraud

Representation and Warranty Insurance Coverage for Corporate Transactions

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