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When Your Data Goes Viral

By Sherilyn Pastor and Kelly Lloyd
February 28, 2015

As discussed in Part One of this article (in the January issue, available at http://bit.ly/1AlvORI), a data breach can jeopardize a company's confidential information such as client records, trade secrets, privileged legal information, or employee records. Although many associate data breaches with hackers or cyberattacks, human error, such as a mistake in computer coding or losing a company laptop, also results in significant breaches.

Is there insurance coverage when a company's data goes viral? Maybe. Part One explained the traditional insurance products that may provide a policyholder with insurance coverage for data breaches, and some of the newer products available to policyholders for these risks. It also considered the mixed law developing around these matters, analyzing the recent New York trial court decision in Zurich American Insurance Co. v. Sony Corporation, Index. No. 651982/2011 (N.Y. Supr. Ct. Feb. 21, 2014). The discussion concludes herein.

Coverage Exclusions

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