Nicolaides Fink Thorpe Michaelides Sullivan LLP

Predicting, analyzing, and resolving digital risks.

Overview

Overview
Experience
News & Insights

The number and severity of highly publicized electronic data thefts, security breaches, and alleged invasions of privacy are increasing on an exponential basis. These incidents pose a risk of substantial liability for the companies accused of such breaches. Companies, in turn, look to their insurance, including specific insurance products that address cyber liability, for coverage. Risks associated with these claims carry significant implications for our clients.

Our attorneys have experience in all aspects of cyber liability. We provide coverage analysis of first party breach or security events, and guide insureds through the breach response process using our network of experienced experts to mitigate liability, risks, and exposures. Our counsel includes:

Complex coverage evaluations of third-party claims
Investigative claims that arise from breach incidents, technology, multi-media
Privacy liability coverage agreements

In addition, our lawyers draft cyber-specific policies and endorsements to address new and emerging risks. Our cyber coverage attorneys assist insurers on a variety of incidents including:

Malware intrusions
Cyber extortion incidents
Large health company personal health information breaches
IRS fraud scams
Social engineering wire fraud transfers
Encryption virus software
Lost laptops
Payment card industry fines and penalties

EXPERIENCE

Case Study

SONY PlayStation breach
In 2011, hackers breached Sony Corporation’s PlayStation Network, stealing the personal information of millions of users. Sony sought coverage for multiple class actions brought by users, asserting that the resulting claims triggered the “personal and advertising injury” coverage under CGL policies.

Our attorneys act in close coordination with our clients to prepare insurance products to address evolving cyber exposures. We mediate, arbitrate, and litigate a wide variety of disputes involving cyber insurance coverages, including claims arising from data theft, intellectual property infringement, virus transmission, security breaches, and privacy invasions.

We are well-versed in the many forms of cyber insurance products for e-business, networks, and informational assets, whether included in liability or first-party coverages (e.g., cyber liability, data recovery, technology errors & omissions, multimedia liability, business interruption).

Representative Cyber Liability experience:

Analyzed and supported denial of coverage for compromised payment card system based on coverage investigation revealing pre-retroactive date intrusions.
Investigated and assisted client in analyzing coverage for large hacker intrusion resulting in breach of guest credit card information at insured resort, and assisted client in denial of subsequent class action lawsuit.
Managed large breach of private insured club payment card processing machines, including liaison with breach attorney, forensic assessment, and exposure analysis on behalf of insurers.
Investigated and provided coverage evaluation of social engineering loss based on computer fraud language of policy.
Evaluated HIPAA breach event by growing shared economy technology company that exposed private health information of customers.
Evaluated business interruption losses following software malfunction.
Monitored and managed malware invasion of large computer gaming company, including forensic investigation and third-party vendors.
Coverage investigation and monitoring of large international technology company purported Telephone Consumer Protection Act class action violations, and managed multi-million dollar settlement and insurance policy buy-out on behalf of reinsurers and insurers.
Mediated and obtained favorable settlement of contested disclaimer of coverage for insured genetic testing company involving complex coverage issues for 15 underlying class action claims in litigation and arbitration.
Provided complex coverage evaluation of numerous purported multi-million dollar losses against global technology company under cyber and technology E&O policy.
Advised client on complex coverage issues and denial of Federal Trade Commission allegations against identity theft company insured.
Obtained summary judgment on lack of general liability coverage for data breach relating to Sony play station hacking incident.