05
May
2015

PlayStation hacking settlement a missed opportunity

Business Insurance

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Sony Corp. of America and Zurich American Insurance Co.’s settlement of their litigation in connection with the 2011 hacking of Sony’s PlayStation Network represents a missed opportunity for a ruling that commercial general liability policies cover cyber risks — but with the increasing popularity of cyber insurance policies, it may be a relatively moot issue, policyholder attorneys say.

According to Josh Gold:

"The settlement is disappointing “because we’re obviously looking to have that trial court decision overturned, and that is not going to happen given the recent settlement announcement,” said Joshua Gold, a shareholder with Anderson Kill P.C. in New York.
He added, “I can only assume that Sony is now getting some money in exchange for withdrawing an appeal, and I guess that is somewhat of a good sign for policyholders, if that assumption is correct,” Mr. Gold said.Furthermore, “Obviously, the insurance companies did not feel certain that their victory at the trial court was going to continue” with the appeal, or they would not have settled, Mr. Gold said.
It means policyholders need to examine all of their potentially applicable policies, including their CGL insurance, with respect to cyber coverage issues “because the potential for insurance coverage remains there,” Mr. Gold said.

To read the full story:  http://www.businessinsurance.com/article/20150505/NEWS06/150509931?tags=%7C338%7C299%7C329%7C75%7C83%7C302

Related People

- Cyber Insurance Recovery Attorney | Anderson Kill P.C.
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