“If software does not physically exist, is it metaphysical?” That was my thought while reading a recent opinion by the Supreme Court of Ohio1 explaining why coverage did not exist when computer software was subject to a ransomware attack. Here is the holding:
Continue Reading Ohio Justices Obviously Do Not Have an Electrical Engineering Degree When They Rule Software Cannot Have a Physical Presence

A recent Order recently reversed the fortunes for Target, which is claiming coverage for payment cards that could not be used.1 Numerous missing data cases are being decided for relatively new and old forms of property insurance. The policy language is important as policyholders and insurers spar over the meaning and new facts involving cyber and electronic data-related loss. Target argued that its liability policy covered the costs for loss of use in this case.
Continue Reading The Continuing Battle of Coverage Following Electronic Data Losses—What is Loss of Use of Undamaged Property?

Chief financial officers and risk managers should carefully and fully explain their financial and computer operations to competent insurance agents so that cyber and crime package policies are tailored to insure their operations in the event of an attack or theft. The financial consequences of not doing so cannot be overstated. For example, The CPA Journal noted in an article:
Continue Reading Can Businesses Trust Their Cyber and Crime Package Policies to Provide Coverage?

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