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Illinois National Insurance Company, an AIG Commercial Insurance company, (“AIG”) told a Pennsylvania federal court in a brief opposing summary judgment that it has no duty to defend Hub Parking Technology USA Inc. (“Hub”), a Pittsburgh-area parking technology company, in a third-party complaint alleging a privacy breach that exposed customers’ credit card numbers at Cleveland Hopkins International Airport.
Continue Reading Insurer Argues No Coverage for Privacy Breach That Exposed Credit Card Numbers

Rosen Millennium Inc. (“Millennium”), the cyber security and IT support subsidiary of Rosen Hotels & Resorts, Inc., has appealed to the Eleventh Circuit contending that a Florida federal court ignored Florida insurance law when it ruled that Travelers Insurance Company has no duty to defend it against a multimillion dollar claim arising out of a cybersecurity breach.
Continue Reading Hotel Data Breach Case Heads to Eleventh Circuit

Hunton Andrews Kurth insurance practice head, Walter Andrews, recently commented to the Global Data Review regarding the infirmities underlying an Orlando, Florida federal district court’s ruling that an insurer does not have to defend its insured for damage caused by a third-party data breach.
Continue Reading Hunton Insurance Head Comments On Hotel Data Breach Coverage Dispute

The construction industry is no stranger to insuring its projects against the risks of physical and natural disasters. Policies purchased to cover these risks, however, often are not broad enough to reach cyber threats, which can be just as damaging and costly as a physical disaster. During the past decade, hacks have targeted the data held by several high profile companies, including Target Corp., Sony Corp., Equifax Inc. and Yahoo Inc.  So far, the construction industry has not yet been at the center of one of these attacks.  Still, builders are no less susceptible to these risks than any other industry, especially given that these companies often possess sensitive data related to buildings and projects.
Continue Reading Construction Industry May Be At Risk For Uncovered Losses Due To Cyber Attacks

The U.S. District Court for the Middle District of Florida, in Innovak International v. The Hanover Insurance Co., recently granted summary judgment in favor of Hanover Insurance Company finding that it had no duty to defend Innovak against a data breach lawsuit. Innovak, which is a payroll service, suffered a breach of employee personal information, including social security numbers. The employees then filed suit against Innovak alleging it had negligently created a software that allowed personal information to be accessed by third parties. Innovak sought a defense for the lawsuit from its commercial general liability carrier, Hanover Insurance Company. Innovak argued that the employee’s allegations triggered the personal and advertising injury coverage part of the policy, which covers loss arising out of the advertising of the policyholder’s goods or services, invasion of privacy, libel, slander, copyright infringement, and misappropriation of advertising ideas. The court disagreed and found the employees’ allegations did not involve a publication that would trigger coverage under the commercial general liability policy.
Continue Reading Recent Decision Is Reminder That Separate Cyber Insurance Policies Are Necessary

A recent article published by Securityroundtable.org highlights the vulnerabilities businesses face in a world of e-commerce and interconnectivity, and how proper planning through a tailored cybersecurity program that includes – among other components – appropriate insurance coverage for cyber risks can help prevent a successful attack and mitigate the financial impact should one occur. Whether…

Retailer Tesco Plc’s banking branch reported earlier this week that £2.5 million (approximately $3 million) had been stolen from 9,000 customer bank accounts over the weekend in what cyber experts said was the first mass hacking of accounts at a western bank. The reported loss is still being investigated by UK authorities but is believed…

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 losses.
Continue Reading Commercial Crime Policy Must Cover $1.7 Million Fraud-Induced Funds Transfer