Category Archives: insurance

Legal Trend: General Liability Insurance Cover Data Breach Liabilities. 3 Bits Informed Intel.

What have state courts been saying across the country about data breach insurance? General Liability policies don’t cover data breaches

What happened this week to alter this legal trend? The U.S. Fourth Circuit Court of Appeals in Virginia found that a ageneral liability policy covered a data breach

What does the insurance company say? The 4th Circuit Court of Appeals got it wrong. General liability policy that covered “electronic publication of material” with “unreasonable…

3 lessons from a data breach lawsuit. Specs Liquor v. Insurance.

Spec’s experienced a data breach that resulted in legal fees. Spec’s was insured and has sued its insurer over the coverage of costs incurred from the data breach.

3 Take aways from a Texas Company with data breach insurance coverage:

  • Spec’s wants its insurance company to pay its legal fees for a legal fight between Spec’s and the credit card processor that experienced the data breach
  • Insurance companies have become good at covering the initial expenses (notifications, initial legal fees,…

INTERIM. Home of the Ducks is now Home of Data Security. 5 Bits of Informed Intel from a new Data Security State Law.

  • data breach defined in new Orgegon law as:
    • “an unauthorized acquisition of computerized data that materially compromises the security, confidentiality or integrity of personal information that a person maintains.”
  • personal information that triggers the notification statute
    • ​Social Security number;
    • Driver license number or state identification card number issued by the Department of Transportation;
    • Passport number or other United States issued identification number;…

Looking for Clients in a booming business? Look to data security insurers.

 Data security insurance is a hot commodity. Here’s why:

  • Gross income from premiums will rise by 300+%  in the next 5 years
  • More income is on the horizon, even with factoring in new regulatory and legislative changes for this burgeoning market

Why the boom? High profile data security breaches lead to more data security policies being written.

Bloomberg | Cybersecurity Insurance Explosion Poses Challenges

3 New Rules from Cyber Insurance Coming to a Regulator Near You

  • Lots of cyber insurance policy litigation.
    • You know what lawyers mean- lawsuits and legislation.
  • 2015 was once in a lifetime groeth in cyberinsurance market
    • Hyper growth leads to regulation and legislation as the unintended consequences emerge
  • health care cyber insurance renewal rates are seeing 150% premium increases
    • Big premium cases mean, big regulatory and legislative changes are afoot

 

Property Casualty 360 | Cyber insurance 2015: Inside a robust and rapidly changing market

5 Most Costly Data Breaches of 2015. Taxpayer Costs. Procurement Opportunities.

  • IRS breach. 100,000 taxpayers exposed. Estimated cost $50 Million.
  • Anthem health insurance breach. 80 million health insurance records leaked. Cost estimate $100 Million.
  • Office of Personnel Management.  21 million federal employee and contact records breached. Minimum cost is the $133 million contract to a credit monitoring and mitigation services provider.
  • Ashley Madison Breach. 37 million customer information hacked. A class action lawsuit seeks $578 million.
  • Two Year 100 banks…

INTERIM Lege Trend: State Proposes 6 Data Security Standards for Businesses.

New York Legislature, at the behest of its Attorney General, is strengthening its data security laws. 

Assembly Bill 6866 adds new data to protection requirements and increases penalties.

This bill creates these standards that establish compliance with the law for businesses:

  • a business that protects data more than the law requires
  • a business that complies with Gramm-Leach-Bliley Act
  • a business that meets international standards for information security
  • a business that complies with…

INTERIM Lege Trend: State Data Security Laws. Upstate Ups the Ante on Health Care & Biometric Data. More fines for More companies.

New York Legislature is considering stronger data security laws which would:

  • increase penalties against companies from $150,000 to $1,000,000
  • in addition to current required protected information of  Social Security, driver’s license and credit card numbers, this bill would require protection of biometrics like fingerprints
  • user names, email addresses, securty questions and answers
  • health information protected under HIPPA
  • establishes reasonable safeguards for business
  • establishes…

How 1 Health Insurer Responded to a Class Action Data Breach Suit Affecting 80 Million

Anthem Inc. responded to a class action lawsuit concerning a data breach affecting 80 million by focusing on the 1 hot botton issue legislatures and regulators are focusing on:

whether the person whose personal information was hacked suffered any actual damages

Why is this response from Anthem important? Because courts, legislatures, and regulators have come down on all sides of whether actual damages is required in a data breach suit.

Anthem also provided all 80 million customers with 2…