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Category Archives: Cloud computing

My Chapter on Insurance Coverage for Cybersecurity and Intellectual Property Claims Now Available in the New Appleman Law of Liability Insurance Treatise

Posted on December 8, 2010 by Scott Godes One comment

Looking for a treatise on insurance coverage? How about one that has an entire chapter on insurance coverage for cybersecurity and intellectual property claims and risks?

Remember when I wrote that I had written a chapter on insurance coverage for cybersecurity and intellectual property claims for the New Appleman Law of Liability Insurance Treatise? Of course you do. And you probably were wondering, “When will I be able to buy that treatise, so that I can have it on my bookshelf and refer to it regularly for all of my questions about insurance coverage for cybersecurity and intellectual property claims?!?” Well, here’s your answer. The treatise is available on the Lexis website. That’s right! Although you really will want to race right to Chapter 18 – Insurance Coverage for Intellectual Property and Cybersecurity Risks, so that you can read about insurance for data breaches, DDoS attacks, viruses, hackers, cybercrime, and IP losses, you’ll get the whole treatise, too. It’s a five volume looseleaf set that gets updated with supplements.

So what are you waiting for? Click here to order your very own treatise.

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. 2010.

AgentsOfAmerica.ORG features my post: “Insurance Coverage for Cyberattacks and Denial-of-Service Incidents”

Posted on October 8, 2010 by Scott Godes Leave a comment

If your business suffered losses from a cybersecurity incident, a denial-of-service attack, or some other computer-, network-, or internet-related event, would you know whether your insurance would cover the losses? If your insurance company denied your claim, would you know whether the insurance company had done so properly?

Well, if you’d like some additional thoughts on these issues, check out my post at the AgentsOfAmerica.ORG website. They posted my piece titled, “Insurance Coverage for Cyberattacks and Denial-of-Service Incidents” and also featured it in their newsletter. In my post, I discuss insurance coverage for cyberattacks, cybersecurity events, denial-of-service (DDoS) attacks, and more. I note a couple of recent cases finding in favor of insurance for these sorts of events under commercial general liability (CGL) insurance policies as well as new cyber insurance policies.

So head over to the AgentsOfAmerica.ORG site and check out my post to see more!

Disclaimer:

Video clip about insurance coverage for data breaches, from the NetDiligence® Cyber Risk & Privacy Liability Forum.

Posted on August 12, 2010 by Scott Godes One comment

HB Litigation Conferences and NetDiligence hosted the Cyber Risk and Privacy Liability Forum in Philadelphia on June 7 and 8, 2010. During the conference, I was on a panel discussing insurance coverage for data breaches. One of the topics that I covered was whether a Commercial General Liability (CGL) insurance policy provides coverage for data breaches. I argued that it does, and explained why. Here’s a short video clip that my friend Tom Hagy created in which I discuss why there is insurance coverage for data breaches and cybersecurity events.

Click here for the video.

Disclaimer:

Note: as a speaker at the conference, I was not charged a fee to attend the remainder of the conference.

“LexisNexis® Insurance Law Community Podcast featuring Scott Godes . . . on Cyber Liability Insurance Coverage”

Posted on July 23, 2010 by Scott Godes 2 comments

LexisNexis was kind enough to have me record a podcast regarding insurance coverage for cyber liabilities. As LexisNexis states on the Insurance Law Center:

On this edition, Scott Godes discusses the types of cyber liabilities facing companies today, what to do, in terms of insurance, if a cyber incident or data breach occurs and types of policies that provide coverage for a cyber event. Copyright© 2010 LexisNexis, a division of Reed Elsevier Inc. Visit http://www.lexisnexis.com/community/insurancelaw/.

If you’d like to hear the entire podcast, please click 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. 2010.

Join me for ACI’s 4th Annual Advanced Forum on Cyber & Data Risk Insurance.

Posted on July 9, 2010 by Scott Godes One comment

Interested in learning more about cybersinsurance and cybersecurity? How about coverage for data breaches, cybersecurity events, and other computer risks? Then please join me for American Conference Institute’s:

4th Annual Advanced Forum on

Cyber & Data Risk Insurance

Monday, September 27 to Tuesday, September 28, 2010

The Helmsley Park Lane Hotel, New York, NY, United States

Cyber and data risk insurance is becoming critical to businesses that operate online, as cyber-attacks are increasing exponentially in terms of frequency, scope, costs and overall impact. With even the best compliance practices in place, it is impossible to guarantee that the private information of consumers and employees will be protected. State Attorneys General and the Federal Trade Commission are becoming more active in investigating and penalizing companies who fail to adequately prevent or respond to a data breach. Additionally, there has been an increase in federal and state legislation and a rise in private actions in the form of mass class actions that are sure to significantly impact this industry.

Demand for cyber and data risk insurance is growing rapidly as businesses are focusing their efforts to address their information risk and data security needs.Broader cyber risk insurance policies have emerged, covering costs relating to responding to a data breach including: notification costs, credit monitoring costs, forensic investigations, call center support, public relations and defense of a claim brought by individuals or federal and state officials.

In light of these risks and exposures, it is critical that you are up to date with the trends in the fast evolving area of cyber and data risk insurance. That is why American Conference Institute developed our successful and well-attended Cyber & Data Risk Insurance Conference in September 2007 and the response in 2008 and 2009 was even better. To those who have attended, come to this 4th annual event — now in New York City — for a revised and updated agenda and to hear from the best and the brightest in the industry, including the FTC, the OTS, the FBI, 2 State Attorneys General and an Assistant Attorney General. For first-time attendees, this conference is your best opportunity to get the tools you need to learn about the new policies, including pricing and negotiating specific coverage, mitigating risks associated with e-business, and to learn strategies so that you can maximize your profitability while minimizing your potential liabilities.

The security and safeguarding of information is vital to protect an organization from financial and reputational loss. This conference is your best opportunity to network with industry insiders, compare products and strategies and to learn valuable information on potential risks and liabilities so that you can put the appropriate insurance protection and risk management practices in place.

Be sure to also register for the Post-Conference Workshop: Negotiating and Drafting Cyber Risk Provisions and Policies

September 28, 2010; 2:00 p.m. – 5:00 p.m.

Back by popular demand with updated content to reflect new developments and additional workshop leaders to walk you through the ins and outs of negotiating and drafting this highly specialized coverage.

Register now by calling 888-224-2480, faxing your registration form to 877-927-1563 or registering online.

Dates:

Mon, Sep 27, 10

Tue, Sep 28, 10

Location:

The Helmsley Park Lane Hotel

New York, NY, United States

My panel, What Policy Holders Are and Should Be Looking for in Cyber and Data Security Coverage, will be covering:

Coverage considerations: What liability and first-party coverages are desirable?

Reasons companies have or have not bought coverage

How standards are evolving in response to new technology threats

Consumer redress: when is it covered and when not?

Coverage for liabilities (including defense and other costs) and first party losses

intentional violations

coverage for electronic and non-electronic loss

Implementing privacy and data security compliance and policies

Disclaimer:

Note: as a speaker at the conference, I was not charged a fee to attend the remainder of the conference.

“Insurance Coverage for Intellectual Property and Cybersecurity Risks.”

Posted on May 19, 2010 by Scott Godes 2 comments

Can you think of many, or, in fact, any, companies that are risk free when it comes to the areas of intellectual property or cybersecurity? If you represent companies with risks relating to intellectual property and cybersecurity, what insurance coverage would apply if those risks turned into claims and potential liabilities? Are you familiar with the developing body of insurance coverage law in those areas?

I’m the author of a forthcoming treatise chapter that answers those exact questions. It’s the “Insurance Coverage for Intellectual Property and Cybersecurity Risks” chapter of the New Appleman Law of Liability Insurance, Second Edition, to be released in June 2010. Here’s the chapter’s introduction:

Two developing areas of insurance coverage law are the issues of insurance coverage for intellectual property-based claims and cybersecurity-based claims. This chapter describes coverages available for such claims. The chapter first analyzes and details the development of coverage for intellectual property claims through advertising injury found in general liability insurance policies, as well as other coverages. The chapter then analyzes coverage for cybersecurity claims. The area of coverage for cybersecurity claims is, relative to most insurance coverage topics, quite nascent, and the chapter considers decisions that should be seen as analogous to this developing topic. The chapter discusses coverage for cybersecurity claims under general liability, first-party, and other policies, as well as new policies being marketed as specific to cybersecurity risks and claims.

The intellectual property section of the chapter provides a basic overview of various types of intellectual property risks and provides a detailed discussion of how insurance policies apply to those risks. The chapter explains the legal principles at issue when seeking insurance coverage for such risks and potential liabilities. The chapter discusses the majority and minority rules for various issues and provides an analysis of the various exclusions that insurance companies have cited when trying to deny coverage for intellectual property claims.

The cybersecurity section of the chapter provides an overview of the new and growing cybersecurity risks faced today and details what insurance policies apply to those risks. The chapter details how courts have ruled on coverage questions for cybersecurity and computer-related risks and liabilities. For those areas of the law that are not as well-developed, in light of the relatively new nature of cybersecurity risks, the chapter notes analogous caselaw and how those holdings should apply to cybersecurity claims. The section also notes issues to consider for companies in the market for new and specialized cybersecurity insurance policies.

This post appeared originally at the Lexis Insurance Law Community.
Disclaimer:

Please join me for the NetDiligence® Cyber Risk & Privacy Liability Forum

Posted on March 16, 2010 by Scott Godes Leave a comment

	Dickstein Shapiro LLP is pleased to announce that Scott Godes, Esq. is speaking on the Are You Covered When Hackers Get Through? session at this conference.

NetDiligence® Cyber Risk & Privacy

Liability Forum

Date: June 7-8, 2010

Price: Risk Managers, CFOs: $795*;

Insurers, Brokers, Policyholders: $895*; Attorneys: $1,195*

Location: The Union League, 140 South Broad Street, Philadelphia, PA

CLE Credit: 6-8 CLE credits (CPD and CPCU credits also available), depending on state requirements. View the CLE credit details.

Mention promo code COB10A when you register for the live event and save $100!**

Chairs

Nicholas Economidis, Specialty Lines, Beazley Group

John Mullen, Sr., Esq., Nelson Levine de Luca & Horst,

Chair of Complex Litigation Practice Group

Robert Parisi, Jr., SVP, National Practice Leader for

Tech/Telecom E&O, and Network Risk, Marsh FINPRO

What You Will Learn

(For a complete agenda and faculty listing, click here.)

Keynote Address by Keith Morales of The Federal Reserve Bank of Philadelphia
Data Breach Liability: An Unstable Legal Environment
Cyber Security and Privacy Liability Concerns: The Risk Managers Speak
Regulatory Trends Briefing
Loss Control-Assessing & Quantifying Network Risks
Responding to a Data Breach
Design and Implementation of an Incident Response Plan
Solving Special Computer Security Issues
Are You Covered When Hackers Get Through?
Looking Into the Crystal Ball: Future Insurance Needs

To learn more or register for this conference,

please call 484-324-2755 or click here.

*All cancellations must be received in writing. Full refunds will be issued if cancellation requests are received 4 weeks before the event begins. Credits, good for 6 months from date of issue, will be issued if cancellation requests are received 3 weeks before the event begins. HBLC reserves the right to cancel any of its programs. Speakers, sessions and times are subject to change.

**Limit one discount per registrant. Discount cannot be combined with any other offer. Offer valid at the live event only and on new registrations only.

CAN’T ATTEND?

You can still benefit from this program! Audio/video recordings are available now. Individually priced and packaged, each recording captures the information and insights delivered by our faculty. Listen to experts, gain new perspectives, and learn proven techniques. For more information,

click here, call 484-324-2755, or email Allison.Emery@litigationconferences.com.

Disclaimer:

Note: as a speaker at the conference, I was not charged a fee to attend the remainder of the conference.

Check out my article, “At Risk: Insurance Coverage for Cyber Security and Data Breaches” in Strategize Magazine.

Posted on March 11, 2010 by Scott Godes 2 comments

The fine folks at Strategize Magazine have published an article that I wrote, along with my colleague, Ken Trotter. The article is titled, “At Risk: Insurance Coverage for Cyber Security and Data Breaches.” It’s in the January/February 2010 edition of the magazine.

Strategize is a magazine that promises:

in each issue of Strategize, we’ll clear out the clutter to reveal what’s really relevant. Our aim is to be your one-stop information source that brings the reader to the boardroom, following the national trends that affect business today, and the innovations of our most provocative business leaders.

Our article gives a clear and easy to read overview of insurance coverage for cyber security and data breach claims. We give real world examples of data breaches and cyber security incidents, and how they affect businesses today. We also discuss coverage for those types of claims under commercial general liability insurance policies, first party insurance policies, crime policies, directors and officers policies, and more. Interested?* Then aim your mouse here to read “At Risk: Insurance Coverage for Cyber Security and Data Breaches.”

* Even if you’re not that interested in the topic, it’s worth the click to see the cool online magazine format and graphic that they put with the article.

Disclaimer:

“From Doctors to ‘E-tailers’: The Expanding Market of Cyber Risks and Coverages.”

Posted on March 3, 2010 by Scott Godes Leave a comment

Are you going to the 2010 Insurance Coverage Litigation Committee CLE Seminar that the American Bar Association Insurance Coverage Litigation Committee is hosting in Tucson, Arizona on March 4-6, 2010? If you are, please sign up for my roundtable presentation, “From Doctors to ‘E-tailers’: The Expanding Market of Cyber Risks and Coverages.” I will be speaking with my friend Dana A. Ferestein on the issues. We’re going to discuss cybersecurity threats and potentially available insurance coverage, along with tips to keep in mind when considering coverage issues under new policies.

Disclaimer:

Join Me at the NetDiligence® Cyber Risk & Privacy Liability Forum!

Posted on January 28, 2010 by Scott Godes One comment

My good friends at HB Litigation Conferences present:

The NetDiligence® Cyber Risk & Privacy Liability Forum
June 7-8, 2010 | The Union League, 140 South Broad Street, Philadelphia, PA

I’ll be a speaker on a panel discussing insurance coverage for cyber risk and privacy issues. Here’s the topic for my panel:

Are You Covered When Hackers Get Through?

• Does a company have coverage for data breaches?

• Knowing your client and when to advise coverage

• Advising clients who have been hacked

• How to secure coverage for future incidents

• Finer legal points of coverage-handling fines, penalties, and notice costs

• Business interruption claims

Moderator: Nicholas Economidis, Specialty Lines, Beazley Group, Philadelphia

Scott Godes, Esq, [formerly] Dickstein Shapiro, Washington, DC

Oliver Brew, Vice President of Technology, Media and Telecoms Underwriting, Hiscox USA, Westchester, NY

Richard Bortnick, Esq., Cozen O’Connor, West Conshohocken, PA

Take a look at the full agenda by clicking here. And you can register online by clicking here.

Disclaimer:

Note: as a speaker at the conference, I was not charged a fee to attend the remainder of the conference.

A blog post so nice, it had to be published twice.

Posted on January 15, 2010 by Scott Godes One comment

The fine folks at the Lexis Insurance Law Center have republished my post, “Dusting Off an Old Law” – Insurance Coverage for Trespass to Chattels Claims. Many thanks to my friend Karen Yotis for putting the article online.

Disclaimer:

“Guest View: Insurance for the cloud”

Posted on January 5, 2010 by Scott Godes 2 comments

When you hear “cloud computing,” is insurance the first thing that you think of? No? I’m the only one who thinks that way? Well, if you were wondering about the implications of cloud computing on insurance and risks, I co-wrote an article with my former colleague, Idan Ivri that addresses those questions.

First, what does “cloud computing” mean? We explain:

Cloud computing is a loose term, but it generally refers to storing user data or applications on a remote server rather than on users’ own systems. A 2009 industry study by Coda Research Consultancy estimated that, by 2015, various forms of such software could represent 17% of all information technology spending worldwide.

That sounds great, doesn’t it? The idea is that you and your business don’t have to buy expensive suites of software or massive servers and hard drives to store all of your applications, because you will be able to access them via a third party (sometimes known as a third party application service provider (ASP) or software as a service (SAAS)).

But is cloud computing all silver lining, and no, uh, grey cloud? We note:

[I]f developers make privacy the top priority, cloud-computing developers may face those that say they should be liable for the bad behavior of unsavory customers seeking a dark place to host illegal data or viruses.

On the other hand, privacy standards that are too low could make developers liable for data theft against legitimate users, or for putting private data into the hands of advertisers. Developers will also have to handle disruptions or unavailability of data and services to end users.

Do developers, ASPs and SAAS providers have insurance to cover those risks? Will “traditional” insurance policies cover? What about specialized “cyber” policies? For the rest of the discussion about insurance for cloud computing, click on over to the full article at Software Development Times on the Web.

Disclaimer:

“Data Breaches Are Not Going Away Will Your Company Be Covered for Those Risks?”

Posted on December 3, 2009 by Scott Godes 3 comments

In the December 2009 edition of e-Commerce Law & Strategy, you’ll find my new article:

Data Breaches Are Not Going Away

Will Your Company Be Covered for Those Risks?

By Scott Godes

Because the costs of data breaches can be so astronomically high, the importance of ensuring that e-commerce and other types of firms have insurance to cover such claims cannot be overstated.

I don’t want to give away the entire article…but, as you might imagine, I discuss the availability of insurance coverage for data breaches within the piece. The article analyzes coverage under Commercial General Liability, Business Owners Policies, and other sources of insurance coverage for data breaches. Click on over for the full version of the article.

Update: A reprint of the full article now is available here.

Disclaimer:

Presentation on Your Cyber Security Strategy — How to Capitalize on New Opportunities & Mitigate Risks

Posted on December 1, 2009 by Scott Godes One comment

Interested in cyber security issues? Please join me for the following program (now archived here), live or via webinar, presented by the Washington Metropolitan Area Corporate Counsel Association:

WMACCA Government Contractors Forum: Your Cyber Security Strategy — How to Capitalize on New Opportunities & Mitigate Risks

Dec 9, 2009
8:00 AM – 10:00 AM
LIVE at Gannett Co., Inc., 7950 Jones Branch Drive, McLean, Virginia OR by WEBCAST from your desk.

Overview

As the corporate world becomes more and more virtual, the need for cyber and data security has never been greater. Understanding the Administration’s new cyber security initiatives and changes on the legislative front can give companies a competitive advantage in developing comprehensive cyber security programs. If your business is grappling with emerging threats, limited funds, and slow procurement processes, you are not alone. Find out how to capitalize on the opportunities available through the Safety Act and other mechanisms to protect your company, and how your insurance coverage policies may cover potential liabilities. This program will address what you need to know, what you need to do, and how to “just do it.”

Speakers

Presented by Scott N. Godes, [formerly] of Dickstein Shapiro LLP; David Kessler, Senior Corporate Counsel, Symantec Corporation; Kenneth A. Mendelson, Managing Director, Stroz Friedberg. Moderated by Brian E. Finch of Dickstein Shapiro LLP.

Notes

Breakfast will be provided on-site from 8:00 – 8:30 a.m. The program and webcast will begin at 8:30 a.m.

Webcast Log-In Instructions:
1. Go to http://www.ec.commpartners.com
2. In the middle of the page where it says Meeting Number, type the following number –340258
3. Click Enter
4. Type your full name and e-mail address when prompted

CLE

Credits: 1.5 hour pending
State: Virginia
Category: General

Contact

Robin Hayutin
Phone: 703-242-8773
E-mail: robin.hayutin@wmacca.com

Location

LIVE at Gannett Co., Inc., 7950 Jones Branch Drive, McLean, Virginia OR by WEBCAST from your desk.

703-854-6000

Sign Up

Cost

Free of charge

View All Events

Disclaimer:

“Dusting Off an Old Law” – Insurance Coverage for Trespass to Chattels Claims.

Posted on November 2, 2009 by Scott Godes 4 comments

“Trespass 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:

New content coming!

Posted on October 29, 2009 by Scott Godes 2 comments

Loyal readers, I know that I have not updated the site with new content for longer than I’d prefer. Rest assured that I have been working on a number of pieces, all of which are close to being finished. I’ll either make them available here or put links here so that you can get to the content.

But for those of you who are hungry for more content, here’s an overview of the pieces that are coming:

Disclaimer:

Category Archives: Cloud computing

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4th Annual Advanced Forum on

Cyber & Data Risk Insurance

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WMACCA Government Contractors Forum: Your Cyber Security Strategy — How to Capitalize on New Opportunities & Mitigate Risks

Overview

Speakers

Notes

CLE

Contact

Location

Cost

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