Cybersecurity incidents are a popular topic of coverage in the press. These incidents range from hacking into organizations that hold a large quantity of data about clients, employees, vendors and other stakeholders to duping employees to transfer funds into fraudulent bank accounts. Cybersecurity is a top of mind issue for most organizations. From a risk management standpoint, organizations often purchase insurance coverage as a means of mitigating the impacts of a cybersecurity incident. That said, sometimes there is a disconnect between the type of coverage the insured thinks it is getting and what the policy actually covers.
This was a particularly important focus in the decision The Brick Warehouse LP v. Chubb Insurance Company of Canada, where the Alberta Court of Queen’s Bench found that a vendor impersonation did not fall within the terms of the plaintiff’s crime policy coverage. The case is
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Increasingly, insureds faced with cyber fraud losses are going to the courts to interpret their policies.Â In The Brick Warehouse LP v. Chubb Insurance Company of Canada, 2017 ABQB 413 [The Brick Warehouse], and in Taylor Lieberman v. Federal Insurance Company, 2017 WL 929211 (March 9, 2017, 9th Cir.) [Taylor Lieberman], fraudulent emails, as part of a social engineering attack, were sent to company employees who acted on them transferring money from the insured’s account. In both cases courts held that coverage under the Fund Transfer Fraud policy was denied as the victim knew or consented to the instructions given to its bank rather than by way of third-party instructions impersonating the insured which would have been covered by the policy.
In Medidata Solutions, Inc. v. Federal Insurance Co., 15-CV-907 (ALC) (July 21, 2017, U.S. D.C. S.D. New York) [Medidata] we see a court
Read more at: http://www.jdsupra.com/legalnews/cybersecurity-spear-phishing-covered-72404/
(cb) said on Wednesday it has added coverage to help U.S. victims of cyber bullying pay for costs, including mental health treatment, legal expenses and lost wages.
The company said it added $60,000 of cyber bullying coverage to its U.S. Masterpiece Family Protection policy, a $70-a-year add-on. The insurance already covers threats including stalking, carjacking, home invasion, air rage, hijacking and child abduction.
Chubb added the coverage amid unprecedented public awareness of cyber bullying. Last year an article in the medical journal JAMA Pediatrics reported
Read more at: http://fortune.com/2016/03/30/cover-cyber-bullying-home-insurance/