Monthly Archives: November 2009

“Strategy for Creating an Effective Corporate Compliance Program”

I welcome you to check out the new Lexis Corporate Compliance Practice Guide:  The Next Generation.  My colleagues and I wrote Chapter 43. Specific Corporate Compliance Challenges by Practice Area: Insurance.  I wrote the section on insurance coverage for cyber security risks.

Here’s what Lisa C. Coppolo McManus, Legal Content Planner for LexisNexis® Matthew Bender®, wrote:

LexisNexis is providing a free download of a chapter from “The Corporate Compliance Practice Guide: The Next Generation.” An excerpt:

The CEO/President of the corporation should provide leadership for the compliance program. This includes launching the compliance program with the message from the CEO/President. This leadership at the top sets the tone for the compliance program and is an essential element of creating a culture of compliance within the corporation.

Further, top management must ensure the effectiveness of the compliance office by providing necessary personnel and funding. Top management should take a leadership role in fostering the compliance program by supporting the program in their daily activities.

Finally, ”specific high-level personnel,” which usually consists of the compliance officers in the compliance office, should be designated with the responsibility for the day-to-day operation of the compliance program. The chief compliance officer is critical to the success of the compliance program. For the compliance effort to succeed, the chief compliance officer should be afforded access to the CEO/President and the Board of Directors, as well as sufficient funding and staff. A chief compliance officer should be appointed to coordinate the activities of individual compliance ”officers” at subsidiaries. Finally, it is vital that the chief compliance officer and all other compliance officers be known for their integrity and high ethical standards.

For the free download, go to http://tinyurl.com/ylnjeff . Login is required, but it’s free and easy (and no spam!).

Disclaimer:

This blog is for informational purposes only. This may be considered attorney advertising in some states. The opinions on this blog do not necessarily reflect those of the author’s law firm and/or the author’s past and/or present clients. By reading it, no attorney-client relationship is formed. If you want legal advice, please retain an attorney licensed in your jurisdiction. The opinions expressed here belong only the individual contributor(s). © All rights reserved. 2009.
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“Dusting Off an Old Law” – Insurance Coverage for Trespass to Chattels Claims.

“TrespNo Trespassingass to chattels”?!?  Isn’t that a doctrine that was dead and buried, brought up only to torment…educate first year law students?  Not any more!  In the electronic age, the trespass to chattels doctrine has been revived.  It has been used for all sorts of claims, including anti-spam claims, network interference claims, and more.

Of course, if you’re like me, you wonder, “Is there insurance available to cover such claims?”  I wrote an article, bylined with two co-authors, in which I address those questions.  Risk and Insurance just published the piece.

The piece’s introduction reads:

As computer technology rapidly advances, legislatures often cannot enact laws quickly enough to respond to new cybersecurity risks. Enterprising lawyers, however, have turned to old legal doctrines for relief. The doctrine of “trespass to chattels,” for example, is an antiquated term that once was buried in the dusty pages of old law dictionaries. But lawyers who handle cybersecurity issues, including allegations of spam, viruses, worms, unauthorized access, and more, have revived the doctrine as a means of redress. For companies facing potential liabilities based on such allegations, the availability of insurance coverage is critical to navigate the nuances of the ever-changing landscape.

Is there coverage for such claims?

Although designed to cover a wide range of risks that could befall a business, many standard form “traditional” insurance policies do not explicitly mention cybersecurity or claims arising out of online activity. But look closely, because coverage can still be available. For example, commercial general liability (CGL) insurance policies, the basic insurance policies bought by thousands of companies every year, provide, in standard form, two basic coverages relevant to this question: coverage for liability arising out of “property damage” and coverage for liability arising out of “personal and advertising injury.” Both coverages might apply to potential liability for a trespass to chattels claim.

Where should a company look when facing trespass to chattels claims?

Although designed to cover a wide range of risks that could befall a business, many standard form “traditional” insurance policies do not explicitly mention cybersecurity or claims arising out of online activity. But look closely, because coverage can still be available. For example, commercial general liability (CGL) insurance policies, the basic insurance policies bought by thousands of companies every year, provide, in standard form, two basic coverages relevant to this question: coverage for liability arising out of “property damage” and coverage for liability arising out of “personal and advertising injury.” Both coverages might apply to potential liability for a trespass to chattels claim.

For the analysis of property damage and personal and advertising injury coverage in CGL policies for trespass to chattels claims, click on over to Risk and Insurance to read the full piece. If not available through those links, the piece has been saved in the Internet Archive by clicking here.

Disclaimer:

This blog is for informational purposes only. This may be considered attorney advertising in some states. The opinions on this blog do not necessarily reflect those of the author’s law firm and/or the author’s past and/or present clients. By reading it, no attorney-client relationship is formed. If you want legal advice, please retain an attorney licensed in your jurisdiction. The opinions expressed here belong only the individual contributor(s). © All rights reserved. 2009.
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