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BT Policyholder Protection Blog
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06 Sep 2016 Scott Godes Quoted in Law360’s “3 Tips For Manufacturers To Insure The Internet Of Things”

Scott Godes, partner and co-chair of the firm’s Data Security and Privacy Practice Group, was recently quoted in “3 Tips For Manufacturers To Insure The Internet Of Things,” published by Law360.   Law360 recently wrote an article about the risks that manufacturers of IoT products face in connection with cybersecurity and data privacy. In the article, Scott said: “You would hope as a cyberinsurance buyer that a privacy or network security incident would be covered under your policy, regardless of whether it is based on an internet of things incident or a more traditional infiltration of a network server.”   Read the full article here. Scott GodesScott N. Godes is a veteran trial lawyer with experience in insurance coverage matters and technology issues. He is a partner in…

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02 Aug 2016 Scott Godes Quoted in Law360’s “Insurance Regulation And Legislation: Midyear Report”

  Scott Godes, partner and co-chair of the firm’s Data Security and Privacy Practice Group, was recently quoted in “Insurance Regulation And Legislation: Midyear Report,” published by Law360.   In the article, Scott pointed out that European authorities have stated that the Privacy Shield ensures that every complaint against a company over purportedly lax data security practices will be dealt with and resolved. As such, corporate policyholders engaging in trans-Atlantic data transfers need to re-examine their insurance programs and make sure their coverage is broad enough to address the costs of responding to consumer and regulatory actions.   Read the full article here. Scott GodesScott N. Godes is a veteran trial lawyer with experience in insurance coverage matters and technology issues. He is a partner in Barnes &…

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24 May 2016 Scott Godes quoted in Law360 Article “Policyholders Get Digital Fraud Coverage Boost at 8th Circ.”

Scott Godes, partner and co-chair of the firm’s Data Security and Privacy Practice Group, was recently quoted in “Policyholders Get Digital Fraud Coverage Boost at 8th Circ.,” published by Law360.   On May 20, the Eighth Circuit found that a bank employee’s failure to secure a computer network does not nix insurance coverage for a fraudulent transfer loss caused by a hacker, which in turn bolsters policyholders seeking coverage for digital fraud by blaming the hacker despite the employee’s negligence.   Scott is quoted numerous times in the article, including one note stating “A key point in the decision was the court’s finding that even if employees were negligent, that doesn’t convert a direct loss into an indirect loss. That holding should help policyholders secure…

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17 May 2016 Does a CGL Insurance Policy Cover a Data Breach? The Fourth Circuit Says ‘Yes’

Introduction   If you have anything to do with cybersecurity, privacy, or insurance, you undoubtedly have heard that the U.S. Court of Appeals for the Fourth Circuit ruled in April that a Commercial General Liability (CGL) insurance policy provides coverage for a data breach, in the case Travelers Indemnity v. Portal Healthcare Solutions.  In the last few years, insurance companies have been marketing cyberinsurance policies as the product designed for cybersecurity and privacy risks.  So how could it be that a CGL insurance policy – which insurance company lawyers proclaim were not “meant” to cover data breaches – provides coverage for data breaches?  We discuss the well-reasoned Portal Healthcare decision, which bolsters policyholders’ rights to collect under CGL policies, below.   The first question when…

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13 May 2016 Scott Godes Quoted in Law360, “4 Tips for Law Firms to Maximize Cyber Coverage”

Scott Godes, partner and co-chair of the firm’s Data Security and Privacy Practice Group, was recently quoted in “4 Tips for Law Firms to Maximize Cyber Coverage,” published by Law360.   The article notes that law firms handle a wide variety of confidential client data, and comments on the importance of having insurance to cover related risks.  The article gives tips about policy terms, conditions, and exclusions that, in a perfect world, law firms should think about when buying coverage.   Law360 asked Scott about using the cloud and outsourcing data storage and processing.  Scott is quoted saying, “To the extent a law firm is relying on cloud providers for storage, processing or some other service, ‘cloud’ or ‘outsourced support’ should be included in the…

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26 Apr 2016 Does a CGL Insurance Policy Cover a Data Breach? The Fourth Circuit Says ‘Yes’

If you have anything to do with cybersecurity, privacy, or insurance, you undoubtedly have heard that the U.S. Court of Appeals for the Fourth Circuit ruled in April that a Commercial General Liability (CGL) insurance policy provides coverage for a data breach, in the case Travelers Indemnity v. Portal Healthcare Solutions.  In the last few years, insurance companies have been marketing cyber insurance policies as the product designed for cybersecurity and privacy risks.  So how could it be that a CGL insurance policy – which insurance company lawyers proclaim were not “meant” to cover data breaches – provides coverage for data breaches?  We discuss the well-reasoned Portal Healthcare decision, which bolsters policyholders’ rights to collect under CGL policies, below.   The first question when reviewing…

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25 Apr 2016 Scott Godes quoted in Legaltech News Article “Cyberinsurance: A Necessary Protection in the Digital Era?”

Scott Godes, partner and co-chair of the firm’s Data Security and Privacy Practice Group, was recently quoted in a Legaltech News article, “Cyberinsurance: A Necessary Protection in the Digital Era?”   Between 2005 and 2015, more than 5,000 must-report data breach incidents were tracked; and since 2002, breach notification laws have been enacted in 47 states. Given the rising number of breaches and response costs, companies are turning to cyberinsurance for remediation.   Scott is quoted numerous times within the article, including one note stating, “A data breach, and several courts have agreed, particularly when the information is put online, involves the publication of materials that violates a person’s right to privacy. And yet, notwithstanding this good case law, for policyholders, insurance companies continue to…

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24 Mar 2016 Will The Fourth Circuit Overturn a Decision Finding CGL Coverage For a Data Breach?

  As reported by Law360’s Jeff Sistrunk, this week, the Court of Appeals for the Fourth Circuit will hear appellate arguments as to whether a Commercial General Liability (CGL) insurance policy provides coverage for a data breach:   The Fourth Circuit will hear arguments Thursday on whether Travelers must defend a medical records company against a class claim that its failure to secure a server caused records to be accessible to unauthorized users, a case experts say will have an impact on the availability of data breach coverage under commercial general liability policies.   Policyholders should hope that the Fourth Circuit’s rate of reversal – reported to be 4.2 percent for “Other U.S. Civil” and 7.3 percent for “Other Private Civil” cases – will give…

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16 Mar 2016 Scott Godes Quoted in Law360: Insurance Article “Data Breach Report Shows Cyberinsurance Not A Cure-All”

  Scott Godes, partner and co-chair of the firm’s Data Security and Privacy Practice Group, was recently quoted in a Law360: Insurance article, “Data Breach Report Shows Cyberinsurance Not A Cure-All.”   The article discusses how companies are managing cyber risks and turning to cyberinsurance policies to handle data breaches.  The article highlights a recent study discussing the size and scope of common data breaches and whether cyberinsurance policies would respond to such incidents.   Scott is quoted in the article saying, “There are some policies that have a retention or deductible that can be significantly lower for the costs of forensic investigation, breach letters or crisis management than the deductible for putative class actions and dealing with regulatory investigations.”   Read the full article here….

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15 Feb 2016 Scott Godes Quoted in Law360: Insurance article “Data ‘Privacy Shield’ Spurs Need for Cybersecurity Coverage”

  Scott Godes, partner and co-chair of the firm’s Data Security and Privacy Practice Group, was recently quoted in a Law360: Insurance article, “Data ‘Privacy Shield’ Spurs Need for Cybersecurity Coverage.”   The article talks about the recent “Privacy Shield” data transfer mechanism agreed to by European and U.S. officials and how it may have companies closely watching their insurance policies. The article discusses changing privacy risks and raises questions about insurance coverage for the evolving risks.   Scott is quoted multiple times in the article, including one note stating, “Policyholders should evaluate their regulatory coverage overall and be thoughtful about the coverage afforded under those policies. They should be thoughtful about the Privacy Shield and whether investigations and claims related to the new requirements…

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