Tag Archives: Cyber

Chubb Owes $4.8M for Medidata Social Engineering Loss

A federal judge in New York awarded summary judgment on Friday in favor of Medidata Solutions, Inc., finding that Medidata’s $4.8 million loss suffered after Medidata was tricked into wiring funds to a fraudulent overseas account, triggered coverage under a commercial crime policy’s computer fraud provision and funds transfer fraud provision. The award comes after District … Continue Reading

Insurer Report Predicts Increasing Global Risk, Up to $53 Billion in Losses, Following Major Cyber Event

As discussed in prior posts, recent cyber events, such as the “Wanna Cry” ransomware attack, serve as important reminders to policyholders that cyber insurance should remain a priority for any business facing potential exposure from a cyber event. A recent report further underscores the potential impact of a major global cyber event, estimating that the … Continue Reading

If You Don’t “WannaCry” After A Cyber Attack, Review Your Cyber Insurance Coverage

Beginning last Friday, and still occurring today, one of the worst and most widespread malware attacks has impacted more than 200,000 victims in at least 150 countries, including Britain’s National Health Service, FedEx, telecommunications companies Telefonica and Megafon, and automakers Renault and Nissan. The malware, known as “WannaCry,” disables the user’s computer system and all … Continue Reading

Hunton Attorney Syed Ahmad Discusses Critical Cyber Coverage Selection Issues in Mealey’s

While there’s no simple formula for determining what, and how much, cyber liability insurance is necessary for a given company, a few simple inquiries can make a big difference.  My colleague Syed Ahmad, along with Eileen Garczynski (senior vice president and partner at insurance brokerage Ames & Gough), recently published an article for Mealey’s Data … Continue Reading

Digital Due Diligence: Hunton Attorneys Discuss Four Critical Questions To Ask When Evaluating Cyber Insurance Coverage

Cyber and crime insurance policies have been heavily recommended to address the growing prevalence and types of cyber risks. My colleagues Walter Andrews and Jennifer White recently authored an article appearing in Risk Management discussing how the purchase of cyber and crime insurance policies alone is not enough to successfully manage these risks. These policies … Continue Reading

ABA To Offer Cyber Insurance Coverage To Law Firms

The ABA announced last week that it would supplement its insurance coverage offerings to include cyber insurance. Chubb Limited will underwrite the insurance, which the ABA said “includes cyber coverage for a firm’s own expenses, such as network extortion, income loss and forensics, associated with a cyber-incident as well as for liability protection and defense … Continue Reading

Failure To Encrypt Costs Hospital $3.2M, And May Threaten Cyber Coverage

As discussed Friday on the Hunton Privacy and Information Security Blog, the U.S. Department of Health and Human Services has imposed a non-appealable $3.2 million fine on Children’s Medical Center of Dallas due to breaches of HIPPA-protected information.  The breaches allegedly occurred in 2009 (when an employee lost an unencrypted Blackberry containing electronic protected health … Continue Reading

Hunton Insurance Partner, Syed Ahmad, Comments On D&O Trends For 2017

Hunton & Williams insurance partner, Syed Ahmad, tells Law360 about trends in D&O liability insurance that are likely to grab headlines in 2017, including the impact of privacy and cyber breaches on corporate executives and the continued fallout from 2015’s “Yates Memo,” emphasizing an increase in government prosecution of individual corporate wrongdoers and incentivizing companies … Continue Reading

Insurance Practice Head Discusses Cyber Insurance For The Real Estate Industry

Hunton & Williams Insurance practice head, Walter Andrews, provides a brief, 5-minute overview, of why members of the real estate industry should be thinking about and obtaining appropriate cyber insurance protection for their real estate operations.  Mr. Andrews explains why cyber insurance is different from other insurance products and requires a careful examination of the … Continue Reading

When Barristers Get Breached: Hunton Attorneys Discuss Insurance Coverage For Cyber-Related Risks Facing Law Firms

Law firms have become a popular target for cyberattacks. My colleagues Sergio Oehninger and Patrick McDermott recently authored an article in the ABA’s TYL magazine regarding insurance coverage for law firms for cyber-related risks. The full article is available here. In the article, Oehninger and McDermott identify the potential coverage issues firms may face under … Continue Reading

Hunton & Williams LLP Attorneys Michael Levine and Matthew McLellan Asked to Weigh In On the Apache Cyber Coverage Decision

On November 4, my colleagues Michael Levine and Matthew McLellan provided commentary for Westlaw about the Fifth Circuit’s recent decision in Apache Corp. v. Great American Insurance Co., No. 15-20499, 2016 WL 6090901 (5th Cir. Oct. 18, 2016), on which Michael Levine had previously written a blog post. In the Westlaw Journal: Computer and Internet, … Continue Reading

Hunton & Williams LLP Attorney Michael Levine Comments On Recent Cyber Coverage Decision And Why Cyber Insurance Reviews Are Needed To Identify Gaps In Coverage

On October 27, 2016, my colleague, Michael S. Levine, was quoted in Business Insurance concerning the recent decision in Camp’s Grocery Inc. v. State Farm Fire & Casualty Co., which he and I discussed on October 26, 2016 on the Hunton & Williams LLP Insurance Recovery Blog.  In Camp’s, the court refused to find coverage … Continue Reading

Fifth Circuit Says “Computer Fraud” Requires More Than “Incidental” Use Of A Computer

In a seemingly illogical decision, the Fifth Circuit Court of Appeals ruled in Apache Corp. v. Great American Ins. Co., No 15-20499 (5th Cir. Oct. 18, 2016), that loss resulting from a fraudulent e-mail did not trigger coverage under a crime policy’s “computer fraud” coverage because the loss was not the “direct result” of computer … Continue Reading

Commercial Crime Policy Must Cover $1.7 Million Fraud-Induced Funds Transfer

A federal judge in Georgia held last week that a Commercial Crime Policy must cover a $1.7 million wire-transfer of funds precipitated by a fraudulent e-mail, purportedly authored by one of the insured’s managing directors. The decision marks yet another attempt by insurers to improperly narrow the scope of coverage afforded for cyber and technology-related … Continue Reading

AIG Launches Cyber-BI And PD Policy

Insurance-giant American International Group (AIG) announced that it will be the first insurer to offer standalone primary coverage for property damage, bodily injury, business interruption, and product liability that result from cyberattacks and other cyber-related risks. According to AIG, “Cyber is a peril [that] can no longer be considered a risk covered by traditional network … Continue Reading

Hunton Insurance Lawyers Levine and Oehninger Quoted on Impact of P.F. Chang’s Cyber-Coverage Loss

Hunton & Williams insurance lawyers, Mike Levine and Sergio Oehninger, were quoted today in a Law360 article analyzing the impact of the recent decision in P.F. Chang’s bid for coverage for certain losses stemming from a 2013 cyber breach. In a June 1, 2016 blog post, Levine and Oehninger criticized the court’s decision and forewarned … Continue Reading

Hunton Lawyers Analyze Insurance for Real Estate Liability Concerns

An article by Hunton lawyers Walter Andrews and Mike Levine, titled Insurance Planning for 2016: Top Ten Real Estate Liability Concerns, was recently published in the Spring 2016 issue of The Real Estate Finance Journal. The article addresses ten recurring liability concerns facing real estate professionals, investors, developers, lenders, owners and managers, and the associated … Continue Reading
LexBlog