A new law set to take effect May 7th, will require employers in New York to disclose electronic monitoring, such as internet access and videoconferencing, to new hires. The law requires disclosures to employees hired on or after that date and applies to phone calls, internet searches, and calls conducted through online platforms such as […]
Cyber Liability
Crime Coverage May Not Apply for an Insured That Never Controls the Money
Another very recent ruling to be aware of as it relates to crime and cyber insurance policies. The Fifth Circuit just yesterday ruled in favor of AIG that its crime policy would not have to cover its insured, a real estate software company, for a $6 million phishing scam loss because the software company didn’t […]
No Cyber Coverage for Offensive Lawsuits Just Yet
According to a lawsuit filed on Monday in federal court in Virginia, two website domains are using a law firm’s name and imitating its attorneys to peddle phishing emails to try to steal personal information from others. The law firm stated that the websites rip off its trademarks to deceive people into thinking they are […]
Review the Policy Definition of Extortion
Extortion coverage is a common insuring agreement included in cyber liability policies and is occasionally found in crime policies as well, particularly those that afford cyber crime coverages. Particular attention to the definition of extortion in policies is recommended since the breadth of its reach can vary amongst carriers and between those lines of coverage […]
Business Interruption and Restoration Costs are the Biggest Drivers of Cyber Losses
According to a report from insurance carrier, Allianz, the biggest drivers of cyber losses are business interruption and restoration costs. The two accounted for more than half of the value ($885 million) of nearly 3,000 insurance cyber claims. The average total cost of recovery and downtime following a cyber incident more than doubled during the […]
Government Crackdown on Failure to Disclose Hacks and Having Deficient Cyber Security
Saw an article published last night that reported the Justice Department is poised to sue government contractors and other companies who receive U.S. government grants if they fail to report breaches of their cyber systems. The department is prepared to take legal action under the False Claims Act against contractors who misuse federal dollars by […]
Utility Fraud Coverage
Many cyber liability policies will offer coverage for cryptojacking or telephone fraud whereby the insured incurs extra costs as a result of a hacker’s unauthorized use of their phone system or their computer system to mine cryptocurrency. These are not standard coverages, but many carriers will agree to provide them and some may only do […]
With the Onset of a Hard Cyber Market, Pay Greater Attention to Policy Forms and Endorsements
It is well known that the insurance industry is currently going through a hard market. D & O liability has likely had the longest stretch in a hard market, whereas cyber liability more recently started to harden. I know some have been preaching it for a while on this platform, but I was not seeing […]