Insurers Fight To Bar Cyber Coverage Under Commercial General Liability Policies

October 26, 2014 – In The News
Business Insurance

Scott L. Vernick was quoted in the Business Insurance article, “Insurers Fight To Bar Cyber Coverage Under Commercial General Liability Policies.” Full text can be found in the October 26, 2014, issue, but a synopsis is below.

Recent legal efforts by insurers to bar cyber coverage under commercial general liability policies could signal a new coverage battle between insurers and policyholders as data breaches continue to rise.

Policyholders have had mixed success in obtaining cyber-related coverage under general liability policies. In February, for instance, a judge held that the insurer was not obligated to cover Sony Corp. of America under its general liability policy for litigation related to a 2011 hacking of its PlayStation Network.

“The track record of companies trying to get coverage under a CGL policy has not worked out too well,” said Scott L. Vernick, a noted privacy attorney. “The Sony decision was a very troubling decision in this area.”