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Suit Raises Breach Coverage Questions

PRIVACY LAW—U.S.

July 27, 2011

A Sony Corp. insurer's assertion that it is not responsible for defending the company from increasing legal claims from recent data breaches highlights the challenges companies can face after cybersecurity incidents, Computerworld reports. Zurich American Insurance filed a suit seeking that it not be required to cover claims asserted in at least 55 class-action lawsuits filed against Sony in the U.S. The insurance company claims it covers "bodily injury" and "property damages" but not damages from cyber incidents. One expert predicts that the court will uphold Zurich's claims, as general insurance typically does not cover cyber liability. 
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