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05 May 2017 The Cloud: Selected Benefits, Risks, and Insurance Coverage Issues (Part 2)

  By Scott Godes, Kara Cleary and Heidi Fessler   In part two of this series, we continuing exploring the benefits, risks and insurance coverage issues associated with the cloud. Read part one here.   Insurance Coverage Issues for the Cloud   In addition to the insurance best practices mentioned in part one, the cloud can raise multiple insurance issues that should be considered carefully. For example, how would insurance provide coverage to the cloud provider or the user if there were a data breach or denial of service attack? But, there are other events in the cyberspace that both cloud providers and users should consider, such as the situation where users cannot access the cloud for data, applications, or other purposes and their business…

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23 Feb 2017 Insurance Coverage Basics for Cloud Computing: 3 Cs to Remember

  Authored by Scott Godes and Kara Cleary   The privacy and security of data continues to be a hot button issue for companies, with privacy and security events frequently in the news. What about for businesses that have moved to the cloud? Whether you are a cloud provider or a cloud user, data breaches and denial of service attacks are real risks. Have you considered whether and how your insurance program will respond to those risks? Here are three terms to remember that may help simplify some of the coverage issues:   Computer System: Some insurance policies, which provide coverage for cybersecurity and privacy risks, have coverage that could turn on whether there was an impact to your “computer system.” A best practice is…

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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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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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29 Apr 2015 Scott Godes Quoted in Law360 Article, “Cyberinsurance Thaw Hinges On Data-Sharing Bills”

Scott Godes, partner and member of the firm’s Policyholder Insurance Recovery Group, was recently quoted in a Law360 article, “Cyberinsurance Thaw Hinges On Data-Sharing Bills.”   This week, the House of Representatives passed H.R. 1560, the Protecting Cyber Networks Act, and H.R. 1731, the National Cybersecurity Protection Advancement Act of 2015. The bills would create liability protections for companies that voluntarily share information on cyberthreat indicators and cyberattacks with each other and the federal government.   Scott was quoted saying, “In short, the bills should offer better protections against cybersecurity and eliminate liabilities for sharing information. That should mean fewer cyberattacks and less liability for policyholders. Or, better said, fewer cyberattacks, fewer losses and fewer claims. That all should make for a positive development when…

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17 Mar 2015 Cybercrime: How Insurance Can Protect Your Company

Just when you thought that it could not get worse for companies in the context of cybersecurity and privacy issues … it does. Perhaps most significant, a court recently allowed banks to proceed against a retailer to pursue damages allegedly flowing from a cyberattack and data privacy incident involving payment card numbers. That same retailer disclosed hundreds of millions of dollars in losses as a result of the cyberattack and data privacy incident. Another retailer fell victim to a cyberattack and data privacy incident involving payment card numbers. Major entertainment businesses suffered cyberattacks, with one reportedly involving information about celebrities, corporate IP, and user names and passwords for social media accounts of the company. Distributed denial of service attacks (DDoS) are also on the rise….

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09 Dec 2014 The Other Cyber Shoe Has Dropped – What Does that Mean for Your Insurance Program?

Just when you thought that it could not get worse for companies in the context of cybersecurity and privacy issues…it does. The end of 2014 has been brutal. Perhaps most significant, a court allowed banks to proceed against a retailer to pursue damages allegedly flowing from a cyberattack and data privacy incident involving payment card numbers. That same retailer disclosed hundreds of millions of dollars in losses as a result of the cyberattack a data privacy incident. Another retailer fell victim to a cyberattack and data privacy incident involving payment card numbers. Major entertainment businesses suffered cyberattacks, with one allegedly involving information about celebrities, corporate IP, and user names and passwords for social media accounts of the company. Distributed denial of service attacks (DDoS) are…

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20 Nov 2014 Scott Godes to Present at the Comprehensive Conference on Cybersecurity Law Presented by Law Seminars International

Lately, large-scale cyber attacks and data breaches have been in the news – from Target to Home Depot. Consumer information, however, is by no means the only data risk as companies collect, store and mine exabytes of data for purposes ranging from health care monitoring to location tracking for push advertising. The challenge for every company is to accurately assess cybersecurity risks and address them in a cost-effective way.   Join Scott Godes, a partner with Barnes & Thornburg, at this year’s Comprehensive Conference on Cybersecurity Law, January 12-13 in Seattle, WA. Scott will be speaking about insurance coverage, trends in coverage options and costs as well as tips for evaluating policies.   To learn more, click here. Scott GodesScott N. Godes is a veteran trial…

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29 Aug 2014 Scott Godes to Present “Be a Cyber Risk Hero: Understand the Risks & Learn Best Practices to Get Them Insured”

  Scott Godes, from Barnes & Thornburg’s Policyholder Insurance Recovery Group, will be presenting on cybersecurity and how to combat cyber threats at the United States Fashion Industry Association (USFIA).   During his presentation, “Be a Cyber Risk Hero: Understand the Risks & Learn Best Practices to Get Them Insured,” Scott will go more into detail of the latest cyber risks and best practices for getting insurance companies or other to pay the resulting costs.   The webinar will take place September 16 from 2 to 3 p.m.   For more information, contact USFIA at (202) 419-0444 or info@usfashionindustry.com. Scott GodesScott N. Godes is a veteran trial lawyer with experience in insurance coverage matters and technology issues. He is a partner in Barnes & Thornburg…

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