Earlier this week, HBO announced that it had suffered a “cyber-incident” involving the compromise of “proprietary information” that reportedly includes forthcoming episodes and scripts from popular HBO shows such as Game of Thrones. The HBO breach is the most recent in a growing list of cybersecurity issues faced by Hollywood studios this year. In an e-mail to HBO employees, CEO Richard Plepler called the cyber attack “disruptive, unsettling and disturbing.”
Hunton and Williams LLP has published its 2016 Retail Industry Year in Review. The Review discusses the key legal and regulatory developments that affected the retail industry last year. In the Review, Hunton insurance coverage attorneys Syed Ahmad, Mike Levine and Jenn White discuss the lessons learned from insurance coverage cases that promise to have a lasting impact on retail cyber security and product contamination insurance. As they explain, “Last year’s decisions are critical reminders that having the right insurance is key, and even unintentional missteps can jeopardize coverage.” Read their commentary here.
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 under legacy property and liability policies for third-party liabilities arising from the hacking of a point-of-sale network and the resulting breach of bank card and other data. Mike’s comments on the risk of relying on legacy coverage for cyber protection and the increasing need to identify gaps between forms that purport to address potential cyber liabilities. If you have questions about the case, or about your cyber coverage, contact Mike or any member of our or Insurance Coverage Counseling and Litigation team for more information.
As reported in the Hunton Retail Law Resource blog, a federal judge in Alabama ruled Tuesday that a grocer could not rely on its legacy business insurance policies – including an “electronic data” coverage extension – to protect against third-party claims after customer data was compromised by a point-of-sale cyberattack. The decision in Camp’s Grocery, Inc. v. State Farm Fire and Casualty Company is yet another reminder to policyholders to ensure that their cyber security programs include both adequate cyber security safeguards and appropriate first-party and third-party cyber/crime insurance coverages. Failure to maintain either may jeopardize coverage for resulting cyber losses.