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Category: Cyber Risk


Medidata Win Fortifies Policyholders In Digital Fraud FightsAug 02, 2017

In a pro-policyholder decision, LAW360.com reported that a New York federal judge recently ruled that a thief’s use of emails to trick employees of Medidata into wiring money overseas was a covered incident under the company’s computer fraud policy, weakening insurers’ arguments that such coverage is meant to apply only to hacking into policyholders’ computers. According to the article, “The computer fraud provision in Medidata Solutions Inc.’s crime policy covered…

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Deleted Emails Cost Company $3M in SanctionsJan 06, 2017

What happens when a senior vice president ignores a litigation hold and deletes tens of thousands of emails? A $3 million sanction. Click here to read our newest case alert and find out how the Federal District Court of the District of Delaware came to their decision. This case is a reminder that counsel needs to advise corporate clients of the importance of document retention policies and procedures.  

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Special Discount for ABA Webinar on Cyber RiskNov 01, 2016

On November 15, 2016, 1:00 – 2:30 PM ET, SDV Southeast Managing Partner Gregory Podolak will be participating in the American Bar Association webinar, “Assessing the Situation: How to Identify and Evaluate a Contractor’s Cyber and Data Risks.”  The program will discuss the following topics: Key exposures (emphasis on the potential compromise of sensitive corporate data and client information) and technical strategies Practical, day-to-day perspective of the general counsel/risk manager…

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One-Stop Shop Cyberinsurance Opens Doors For Small CompaniesOct 17, 2016

If you are a small company worried about keeping your client data safe, there are now a number of options to help. SDV’s Gregory Podolak was recently interviewed by LAW360.com on his thoughts… As the threat of cyberattacks continues to loom large, more insurers and brokers have started offering cyber-specific policies with “fringe benefits” such as risk scanning and access to data breach response professionals. Earlier this month, for instance,…

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Cyber Insurance Tax BreakSep 22, 2016

In an effort to encourage businesses to mitigate the risk of a data breach, House Republican Ed Perlmutter has introduced a bill offering a tax credit to businesses that purchase qualifying cyber insurance policies. The tax credit is equal to 15% of the policy’s premium, making cyber insurance coverage more affordable for businesses that are on the fence about purchasing a policy and making higher limits more accessible for businesses that require additional coverage. SDV…

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Georgia Federal Court Rules Commercial Crime Policy Covers Fraudulent Wire TransferSep 14, 2016

With cyber fraud becoming more prevalent in today’s business world, policyholders should be aware of some of the points raised by commercial crime insurers to deny coverage. On August 30, 2016, a Georgia Federal Court held that a commercial crime insurer must cover a $1.717 million loss suffered by its insured because of a wire transfer caused by a fraudulent e-mail. The Court rejected the insurer’s argument that the loss…

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US-EU Privacy Shield Program Open for Sign-UpsAug 02, 2016

For several months we have been closely following the negotiations leading up to the adoption of the US-EU Privacy Shield. This framework, which replaces the US-EU Safe Harbor program, was formally adopted by an overwhelming majority of EU member states on June 12. Starting August 1, U.S. companies that handle or transmit data of EU subjects can register on www.privacyshield.gov to signify that they participate in the Privacy Shield. Since compliance…

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Twist Ending: Cyber Insurance Policy Doesn’t Cover Cyber Risk for Hospitality Industry PolicyholderJun 10, 2016

There may be a very good chance your cyber insurance policy doesn’t cover what you think it covers. The recent decision P.F. Chang’s China Bistro, Inc. v. Federal Insurance Company was a wake-up call for policyholders who think simply purchasing a dedicated cyber policy is good enough. Careful assessment of your organization’s unique risk profile, the team involved in procuring the policy, the terms of the policy itself, and the…

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Policyholders Get Digital Fraud Coverage Boost At 8th Circ.May 24, 2016

Greg Podolak was quoted once again in the latest issue of Law360. This recent posting discussed last week’s decision by the 8th Circuit Court that coverage must be provided for a bank that was hit by a hacker, even if the negligence of one of the bank employee’s was partially to blame. The opinion should make it difficult for insurers to fight the application of the concurrent-causation doctrine unless they have included…

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Media Update: Cyber Risk CoverageMay 11, 2016

SDV’s own Gregory Podolak is well known in the cyber risk world. He’s been quoted recently in two articles about the topic. In Business Insurance, he was quoted in the article Cyber Ruling Opens Door to CGL Claims about a recent decision that allowed policyholders to obtain coverage for data breach events under a CGL Policy. The article maintains that, while this was a win for that particular policyholder, the…

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Fourth Circuit Opens a Portal to Coverage for Data Breach under CGL PolicyApr 13, 2016

On April 11, 2016, the Fourth Circuit held that a records storage company was entitled to a defense under its CGL policy for a class action lawsuit claiming that the company failed to safeguard confidential medical records. In affirming the decision of the US District Court for the District of Virginia, the Fourth Circuit commended the District Court for its thorough and sound legal analysis and agreed that the class…

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SDV Talks Cyber Cases with LAW360Apr 12, 2016

The website LAW360.com has once again reached out to SDV’s Gregory D. Podolak to get his input on a number of new cyber cases. Greg has been quoted in two recent stories on the LAW360 blog: From April 4 – A Policyholder’s Guide To Commercial Crime Coverage Technology has made it possible for fraudsters to convincingly pose as a company’s executives, vendors or customers, making it easier for them to…

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SDV Comments on Managing Cyber RisksMar 17, 2016

SDV partner Greg Podolak has been quoted again in a Law360 article. In “Data Breach Report Shows Cyberinsurance Not A Cure-All”, Greg, and other thought leaders in the industry, were asked about a recent report that covered challenges faced by many companies in managing cyber risks. Greg commented on companies’ tendency to rely solely on their IT departments when responding to data breaches. “The approach to dealing with these issues has…

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US-EU Data Protection is Ramping UpFeb 18, 2016

If you are a risk manager of a multi-national company, and you haven’t heard of Article 29 Working Party (WP29), it’s time you become acquainted. It is an independent European advisory body on data protection and privacy. One of its core functions is to provide an opinion on the level of data protection in the EU and other countries. In this capacity, it will advise on the terms and ultimate…

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EU Adopts General Data Protection Regulation; Now May Be the Time to Look for EU Cyber CoverageJan 05, 2016

On October 22, we posted about the anticipated EU General Data Protection Regulation. As expected, the EU adopted the Regulation as part of its data protection reform package on December 15. US businesses have been concerned about protecting the data of EU subjects transmitted to the US because in October, the European Court of Justice declared the US Safe Harbor regime invalid. EU and US negotiators have been frantically working…

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