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 induce unsuspecting workers into transferring money through so-called phishing email scams.
Some insurance carriers have recently interpreted the language in computer fraud provisions found in crime policies to extend only to hacking crimes involving direct access to a computer system by an individual with malicious intent. Disputes over such language indicate that policyholders may face pushback if they seek coverage for complex fraud schemes under a traditional crime policy, according to experts.
“The fundamental question is whether crime policies are keeping up with the times,” said Greg Podolak, head of Saxe Doernberger & Vita PC’s cyber risk practice. “Is the crime carrier agreeing to take on the risk of some of these more intricately designed, newer schemes?”
From April 11 – Insurers Face Cyber Coverage Setback In 4th Circ. Ruling
In an unpublished opinion, a panel of the Fourth Circuit affirmed the decision of a Virginia district court, which held in August 2014 that Travelers must defend Portal Healthcare Solutions LLC against a proposed class action alleging that the policyholder’s failure to secure its server made medical records accessible by unauthorized users online…
While the insurance market is trying to push cyber risks into specialized policies, the Fourth Circuit’s decision indicates that data breach incidents may still implicate multiple types of coverage, according to Greg Podolak, head of Saxe Doernberger & Vita PC’s cyber risk practice.
“More than anything, [the Fourth Circuit’s decision] is an important reminder that the overlap between cyber and traditional risks shouldn’t get overlooked because of the market momentum toward cyberinsurance,” Podolak said. “In many scenarios, there is going to be a combination of both cyber and traditional coverage.”
You will need a subscription to LAW360 in order to read these articles. If you have any questions about these topics, please email Greg directly.
Apr 12, 2016
Gregory D. Podolak