Sony’s insurance company sues to deny data breach coverage

Jul 25, 2011
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It's been a while now since we heard anything more on the massive security breach that happened to the Sony PSN this year. Sony finally has the entire network up and running again around the world, but it is still predicting a massive loss due to the hack. Last month a report claimed that Sony knew the scale of the attack earlier than it admitted. I never really thought about insurance on Sony's part, but apparently, the company has insurance policies that cover all sorts of contingencies that might affect business.

One of the firms that insure Sony is now suing the company in court to get the courts to rule that the policy doesn't cover losses due to the data breach. Apparently, the demand for cyberinsurance to protect firms against data theft and security breaches is very popular. The company suing Sony is Zurich American Insurance Co and it has filed the suit in New York state courts. The documents were filed last week.

The goal of the insurance company is to get the courts to defend or indemnify Sony against any claims "asserted in the class-action lawsuits, miscellaneous claims, or potential future actions instituted by any state attorney general." The insurance company doesn’t think that its policy covers Sony for the hack, but if it does have any liability it wants to be sure any other insurance companies that Sony has are obligated to pay as well.

[via Reuters]


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