The potential for cyberattacks and data breaches continues to loom large in any company’s calculus of risk, with events like the recent WannaCry attack only highlighting the threat. For years, the insurance industry has responded in kind by offering variations on forms of cyber risk insurance. However, not all policies are created equal. It is important for the insured to be aware of what is covered—and what is not.

At its most basic level, cyber risk insurance can be divided into first-party and third-party coverages. Most policies will contain some combination of these coverage types. Both of these coverages potentially contain pitfalls for the unwary.  Continue Reading How to Protect Against Cyber Liability Threats

Even though cyber breaches—hacks, ransomware attacks, denial or delay of service attacks, malware, phishing and the like— have existed for years, coverage under actual cyber policies (as opposed to CGL, D&O, or crime policies) is now starting to be litigated. One of the early issues that has been addressed under a cyber policy is if cyber policies provide coverage for Payment Card Industry (PCI) fees assessed by credit card companies in case of a data breach for which the insured is ultimately liable. In P.F. Chang’s China Bistro, Inc. v. Federal Insurance Co., No. CV-15-01322-PHX-SMM,  2016 WL 3055111 (D. Ariz. May 26, 2016), the court answered that question in the negative under the cyber policy at issue there. Continue Reading Cyber-Policy Coverage for Payment Card Industry (PCI) Fees

Does your business manufacture autonomous vehicles, supply components or software for use in autonomous vehicles, or otherwise incorporate autonomous vehicles into its business plan? For any venture involving autonomous vehicles, there are new risks that your business should understand and insure.

But first, what exactly qualifies as an autonomous vehicle? There are varying levels of automation, and before evaluating insurance options, it is important to understand the levels of automation. The Society of Automotive Engineers (SAE) has established levels of automation on a scale of 0 to 5, from no automation to full automation, respectively. The full chart created by SAE in its standard J3016 is available here. Continue Reading Autonomous Vehicles: New Risks in A Driverless World