The Hacker Did It – No Coverage

Before Target, there was Sony: In 2011, more than seventy million of its user accounts were compromised in a cyber attack, giving rise to an intense legal battle between the company and its insurers over the coverage afforded by commercial general liability (CGL) policies. A recent ruling on the matter, from New York State Supreme Court Justice Jeffery K. Oing, was clarifying, although it may not be the end of it. Sony is considered likely to appeal. A key point from the court: There were privacy violations all right, but they were not committed by the insured. Attorneys Jonathan L. Schwartz and Aaron J. Aisen from Goldberg Segalla take a look at the ruling and what it means for companies at risk.