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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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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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02 Oct 2015 Scott Godes Quoted in Law360 Article, “A Cyberattack Survival Guide for Policyholders”

Scott Godes, partner and co-chair of the firm’s Data Security and Privacy Practice Group, was recently quoted in Law360’s article, “A Cyberattack Survival Guide for Policyholders.” The article examines cybersecurity concerns companies face after massive data breaches and highlights issues such as card issuer liability, customer liability, and D&O litigation.   Scott is quoted multiple times within the article.  He notes that there is not a magic solution to preventing data breaches and cyberattacks, noting that many “large enterprises that were hit with data breaches” had been “certified as compliant with payment card security rules by a third party.” Scott then gives advice for buying and evaluating cyberinsurance policies and insurance towers for those risks.   Read the full article here. Scott GodesScott N. Godes…

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13 Mar 2015 Should Retailers Rely On CGL Coverage For Data Breaches?

In the past year, multiple cases have disputed whether commercial general liability insurance policies provide coverage for lawsuits related to data breaches and data privacy incidents. At least two matters are on appeal. The question of whether there is CGL coverage for those lawsuits is quite significant, particularly to retailers that have suffered data privacy incidents involving payment cards (i.e., credit and debit cards). CGL coverage can provide overlapping coverage with cyberinsurance policies, if not its own independent coverage, and defense costs under CGL policies frequently do not erode policy limits.   As a starting point, standard-form CGL policies provide coverage for all sums that an insured is liable to pay as damages because of bodily injury, property damage and personal and advertising injury. Bodily…

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03 Jul 2014 Scott Godes to present at ACC-SoCal’s Networking Cocktail Reception: “Be a Cyber Risk Hero – Understand the Risks and Learn Best Practices to Get Them Insured.”

Scott Godes, from Barnes & Thornburg’s Policyholder Insurance Recovery Group, will be presenting on cybersecurity, data breaches and insurance coverage for those risks at the Association of Corporate Counsel Southern California Chapter (ACC-SoCal) “Networking Cocktail Reception: Be a Cyber Risk Hero – Understand the Risks and Learn Best Practices to Get Them Insured.“ The event will take place:   July 24, 2014, 5 p.m. PDT   The California Club 538 S. Flower Los Angeles, CA 90071   The overview of the presentation is:   Is cybersecurity a board-level concern for your company? What does that even mean? Can you get someone else to share in the financial risk of this burgeoning threat? In this CLE, you will hear about the latest risks, how much they’ll cost…

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21 May 2014 Scott Godes and Ken Gorenberg present “Taking the Target Off Your Back: Insurance Coverage for Data Breaches and Other Cybersecurity Threats”

  Scott Godes and Ken Gorenberg, from Barnes & Thornburg’s Policyholder Insurance Recovery Group, will be presenting on insurance coverage for data breaches and other cybersecurity risks at Barnes & Thornburg‘s “Baseball & The Law” CLE and baseball outing on May 22, 2014.  The event will be held at the firm’s Chicago office.   They will discuss spear phishing, give tips for evaluating a cyberinsurance policy  as well as give details of: Privacy incident Payment card brand liabilities Business disruption and data loss Costs related to cyber incidents and data breaches PCI compliance Insurance coverage for data breaches under CGL, crime, E&O, D&O and first party property insurance policies       Scott GodesScott N. Godes is a veteran trial lawyer with experience in insurance coverage matters and technology issues. He is…

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14 May 2014 Scott Godes to present at the AFP® Annual Conference in Washington, DC

Scott Godes will be presenting at the AFP® (the Association for Financial Professionals®) Annual Conference at the DC convention center (the Walter E. Washington Convention Center) from November 2-5, 2014.  Scott will be part of a panel discussing insurance for cyber risks.    The topic for the panel will be:   Cyber Insurance: What Is It? Am I Covered? Network security and privacy risk – it’s ubiquitous. But do you really know what it is? The financial burden of a security breach event can be overwhelming and can often be mitigated with the purchase of an insurance policy. In this session, industry experts who have experienced breach events and understand the costs incurred as a result provide tips on breach preparedness, incident response, legal obligations and risk transfer mechanisms to…

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08 May 2014 Scott Godes presents “Cultivating Ethics: Mitigating Vulnerability to Cyber and Data Security Threats in Order to Maintain Client Confidentiality”

Scott Godes,  from Barnes & Thornburg’s Policyholder Insurance Recovery Group will be a panelist presenting a webinar titled, “Cultivating Ethics: Mitigating Vulnerability to Cyber and Data Security Threats in Order to Maintain Client Confidentiality.”  The presentation will be part of Virtual LegalTech.   The webinar will take place on May 15, 2014, and run from 9:30 a.m. – 5 p.m. ET.  Scott’s session will from 3:45 p.m. until 4:45 p.m. ET.  You can register for the event here.   The webinar will include discussion about the following topics: In light of the recent NSA surveillance of US law firms, how safe is your data? What types of firms are most susceptible to cyber attacks and data breaches? Why in-house legal departments need a sound cyber security strategy. Best practices for…

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08 May 2014 Increasing data breach costs should lead to a review of insurance policies and vendor contracts

The Ponemon Institute has released its 2014 Cost of Data Breach Study: Global Analysis.  The Ponemon 2014 study, (additional registration is required), offers fascinating insights into the changing world of data breaches, data security, data privacy and cybersecurity incidents.   The report is dated as of the year of publication (May 2014), with the majority of incidents that were evaluated having taken place in 2013.1  One fact in the report that likely will make the most headlines, is that “the average total cost of a data breach for the companies participating in this research increased 15 percent to $3.5 million.”2  The report explains further that “[t]he average cost paid for each lost or stolen record containing sensitive and confidential information increased . . . to $145 ….

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