Cyber liability alert

While the Sony Playstation hacking case might be the bellwether for cyber liability, anyone who operates a website could need protection.

On Wednesday William Corbett and Robert Vinci held a seminar on cyber-liability at the Fairmont Hamilton Princess. Drinker Biddle and the Bermuda Foundation for Insurance Studies sponsored the seminar. 

Drinker Biddle partners Mr Corbett and Mr Vinci discuseds liability for data security breaches under traditional commercial insurance policies, effectiveness of exclusions in traditional commercial insurance policies, as well as policies seeking to cover US cyber liability risks (including regulatory fines for breaches) and shared their experiences and provide tips on drafting policies and handling claims.

Mr Corbett said there has been an explosion of legislation dealing with cyber-security and privacy. 

He added: “There has also been concerted attacks on the Internet by state-sponsored organizations and individual hackers have led to an explosion of liability. As companies confront that liability they’re looking for ways to deal with it, with insurance.

Disputes

“We’re attorneys that specialize in insurance coverage in particular. We’ve been asked by our clients to become involved in disputes over cyber-liability.”

Mr Corbett said his company is litigating the Sony Playstation data breach, which could be considered the poster child of cyber crime.

“They operate a site where gamers get together and, for a subscription fee online with gamers across the world. back in 2011, Its Playstation network was hacked and the personalbly identifiable information of some 77 million of its customers was taken by the group Anonymous — perhaps the most notorious hacking collective. 

“The Sony Playstation has become the bellwether for a well-known hacking incident that impacted of individuals around the United States and around the globe.”

He said the insurance fight from that has also become well-known. 

Mr Corbett added: "Anyone who does business on the Internet and operates a website has to be mindful of how it interacts with the public. A lot of websites leave tracking cookies and java script, which might interfere with the operation of the computer — if it does, those people can and do sue.