“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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4 comments

  • Pingback: New content coming! « Corporate Insurance Blog

  • We specialize in specialty programs and wold like to look at your cybersecurity.
    Thanks, Richard 860-234-0432

  • nice one. Some useful infomation here good work. I can’t contribute a decent comment as i am abit out of my deph I will be checking back here periodically for your new updates. london insurance 30 St Mary Axe, london, EC3A 8EP 020 7193 4776

  • I’m wondering if the new case law that will bring Twitter, Facebook, Myspace into the 21 century is going to happen anytime soon. How will these new technologies fit into our current system and how can they be controlled across cyberspace?

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