We are proud to share that Business Insurance has named Hunton Andrews Kurth insurance coverage associate, Latosha M. Ellis, one of the magazine’s 2021 Break Out Award winners. Business Insurance’s Break Out Awards honor 40 top professionals from around the country each year who are expected to be the next leaders in risk management and the property/casualty insurance field. Business Insurance reviewed hundreds of nominees, all of whom have worked in commercial insurance or related sectors for under 15 years. Out of those hundreds, Latosha was selected as one of the 40 honorees for 2021.

Continue Reading Hunton Andrews Kurth Insurance Attorney, Latosha M. Ellis, Honored by Business Insurance Magazine

The adage goes, “the best defense is a good offense.” This appears to be the approach that New York insurance regulators are advocating in response to what they deem “systemic risk[s] that occur when a widespread cyber incident damages many insureds at the same time, potentially swamping insurers with massive losses.” On February 4, 2021, the New York Department of Financial Services (“DFS”), which regulates the business of insurance in New York, has issued guidelines, in the Insurance Circular Letter No. 2 (2021) regarding “Cyber Insurance Risk Framework” (the “Guidelines”), calling on insurers to take more stringent measures in underwriting cyber risks. In the Guidelines, DFS cites the 2020 SolarWinds attack as an example of how managing growing cyber risk is “an urgent challenge for insurers.”

Continue Reading New York Regulators Call on Insurers to Strengthen the Cyber Underwriting Process

It’s a cautionary tale of cyber fraud.  A title agent in a real estate transaction receives an email ostensibly from the mortgage lender providing instructions for transferring the loan proceeds into a settlement bank account.  After transferring the funds ($520,000), it becomes apparent that the transfer instructions came from an email address that was one letter off from the mortgage lender’s actual email address – it was a scam.  But it’s too late, the scammer has already withdrawn the funds from the settlement account and cannot be traced.

Continue Reading Engineering Coverage for Social Engineering Schemes in Light of New Jersey Federal Court Opinion Finding No Errors and Omissions Coverage for Email Scam

In March, we reported on the initial filing of several securities class action suits arising from the coronavirus pandemic (COVID-19). For example, at the start of the pandemic, shareholders of Norwegian Cruise Lines Holdings, Ltd. filed a class action alleging that the company and certain officers violated the Securities and Exchange Act of 1934. The lawsuit alleged that the cruise line made false and misleading statements about COVID-19 in order to persuade consumers to purchase cruises. This allegedly caused the share prices to be cut in half.

Continue Reading COVID-19 Event-Driven Litigation Continues to Sail

Is it illegal for an insurer to pay the ransom demanded in a cyber extortion or ransomware attack on its insured? According to the US Department of the Treasury’s Office of Foreign Assets Control’s (“OFAC”) October 1, 2020 advisory (“OFAC Advisory”), in certain situations, it may be.

Continue Reading While OFAC Cautions Cyber Insurers About Facilitating Ransomware Payments, Policyholders Should Ensure They’re Covered

The Hunton Andrews Kurth Insurance Coverage Practice Group is pleased to announce that insurance coverage associate Latosha M. Ellis has been honored by Virginia Lawyers Media, the publisher of Virginia Lawyers Weekly, in its 2020 class of “Up & Coming Lawyers.”

Continue Reading Hunton Insurance Coverage Group Attorney, Latosha M. Ellis, Listed in 2020 Class of “Up & Coming Lawyers” by Virginia Lawyers Weekly

As Texas and Louisiana brace for Hurricane Laura to make landfall, policyholders in the affected regions should be making last minute preparations to ensure their properties are covered in the storm’s wake.

Continue Reading As Laura Wreaks Havoc Along The Gulf, Is Your Insurance Ready to Respond?

On June 29, in a development that may fundamentally change the landscape for California businesses which have sustained COVID-19 related business interruption loss, two California legislators amended pending legislation to address several of the most hotly contested issues regarding insurance recovery for these devastating losses.

Continue Reading It’s a COVID-19 Pandemic; It’s Everywhere – New Cal. Bill to Make Insurers Prove Otherwise

Following the deaths of George Floyd, Breonna Taylor, Ahmaud Arbery, Tony McDade, and Rayshard Brooks, protests against systematic racism in general, and police brutality in particular, have swept the globe. These protests have largely been peaceful, but a small, fractious group of individuals has used the protests as cover to incite violence, damage property, and loot businesses. While it might be cold comfort to the affected business owners to hear that property damage is not the norm, most have insurance that protects their pecuniary interest.[1]

Continue Reading Riot-Related Damage and Income Losses are Covered under Most Business Owners’ Policies

Energy industry: is your insurance sufficient to handle a major cyber event? Larry Bracken, Mike Levine, and I address this question and more in our recent article for Electric Light & Power, found here.  In the article, we identify three major gaps in cyber insurance that we routinely see when analyzing coverage for energy industry clients. The first major gap is coverage for bodily injury or property damage caused by a cyber event. Most cyber insurance policies exclude coverage for both bodily injury and property damage, even if caused by a cyber event. Meanwhile, many commercial general liability insurance policies now exclude cyber-related risks, thus creating a gap in coverage for these losses. The second gap we identify is coverage for fines and penalties, including those issued under the European Union’s General Data Protection Regulation (GDPR). Even where cyber insurance policies expressly purport to cover fines and penalties, it is unclear if these may be deemed uninsurable as a matter of public policy in certain jurisdictions. Finally, we identify a gap in coverage for business income losses when the insured’s network, or that of a vendor on which they rely, goes down. That coverage is a key component of a robust cyber program, but one that is typically only offered for an additional premium.

Continue Reading Hunton Insurance Lawyers Discuss Cyber Risks to the Energy Grid in Electric Light & Power