Like many people, I cannot remember the last time I paid for a dinner out, bought a new pair of pants, or paid an electric bill with cash or a check. When I am not working on behalf of policy holders, I like to travel, so I pay for everything I can by credit card to earn travel miles. For a business owner to get paid from my credit card transaction, they must enter into agreements with a third-party servicer to facilitate the processing of credit card transactions. To complete these transactions, the third-party servicers also have separate agreements with credit card associations, like MasterCard and Visa. MasterCard or Visa have rules that may obligate the business owner to pay additional fees and assessments in the event of a data breach in order to keep accepting credit cards.
Continue Reading Cybersecurity Insurance: Credit Card Data Breaches Come with Extra Costs that May Not be Covered

Have you honestly read your “computer fraud” or “cyber insurance” policy coverage? Chances are, if you did, you probably would not understand the wording and if you are really covered. Here is an example of wording:

F. Computer Crime

1. Computer Fraud

The Company will pay the Insured for the Insured’s direct loss of, or direct loss from damage to, Money, Securities and Other Property directly caused by Computer Fraud.
Continue Reading Computer Fraud and Cyber Crime Insurance—Do Not Let The Insurance Company Take Advantage of Your Loss

Technology in business, and everyday life, is intangible now more so than ever for many Americans as we confront the COVID-19 pandemic. As people try and find some semblance of normalcy, technology is a lifeline to stay informed about the changing landscape around the virus, socialize with friends and family, entertain and educate kids kept out of school, and for those who can, continue to work at home.
Continue Reading Cybersecurity Vigilance During the COVID-19 Pandemic: Check Your Insurance Policy

Law360 published an excellent article, The Insurance Landscape For Phishing Claims Is Shifting,1 written by Jason Rubinstein and Jasmine Chalashtori. Their summary about the importance of coverage for these computer fraud claims and the need for brokers to discuss these risks with their business clients was highlighted at the end of their article:
Continue Reading Computer Fraud, Phishing, and Cyber Insurance Claims Pose Significant Risks and Coverage Issues

It’s the stuff that dreams are made of. Humphrey Bogart delivers this memorable line at the end of The Maltese Falcon, summing up the allure of the shady characters’ search for the eponymous, elusive relic. Pro-policyholder case law can be equally elusive, especially when unsettled areas of insurance law, like coverage for cyber losses, are at issue.
Continue Reading Insurer Must Cover Policyholder’s $4.8 Million Cyber-Scam Loss

Various courts across the country have reached mixed decisions for insurance coverage disputes involving insureds who fell victims of social engineering crimes. The court’s ruling in Medidata Solutions Inc. v. Federal Insurance Company,1 finding coverage for the insured who was spoofed by e-mail fraudsters was previously discussed by my colleague, Verne Pedro. As Verne pointed out in his blog, the debate over whether and when victims of cyber-crimes are covered under computer fraud and similar policy provisions remains contentious and unsettled.
Continue Reading Social Engineering Schemes – Is There Coverage for Computer Fraud Involving the Company’s Email System?

Cyber-risks are not just about corporate data breaches anymore. I recently spoke to a public adjuster who said he was a victim of a ransomware attack. Ransomware is malicious software (malware) installed on a computer, smart phone, or other mobile device, without the owner’s consent. Once malware is installed, cybercriminals can monitor and control online activity, steal confidential information, interrupt service, commit fraud, or disable access to files and critical data until a ransom is paid to unlock the system.
Continue Reading Top Seven Things Public Adjusters Should Know About Cyber Risks and Cyber Insurance

This is the first post in a three-part series about first-party coverage for losses of computer data.

Labor Day 2016 was a bad day for my client. That was the day her web host company hit the delete button, knocking her offline and completely wiping out her business website. Instead of celebrating a holiday weekend, she was dealing with a crisis.
Continue Reading Losses in Cyber-Space: Recovering Insurance Proceeds When Your Computer Data Can’t Be Recovered (Part One)