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Read the Fine Print
The difficulties of securing important company and customer data are not new to franchised businesses, but the scale of the problem continues to increase. A new white paper by insurance consultants Peter R. Taffae and M. Damien Magnuson indicate another threat: inadequate insurance coverage when security breaches occur. See, “What Every Insurance Professional Must Know About Network Security and Privacy Liability,” 2nd ed., Peter R. Taffae and M. Damien Magnuson, ExecutivePerils.
Insurers are adding new restrictions to their cyber liability coverage, even as industry executives incorrectly assume that their standard insurance policies provide them with protection. “While limited coverage for some privacy, media or data breach exposures may be included in 'traditional' insurance programs comprised of commercial general liability, umbrella liability, fidelity/crime, and kidnap, ransom and extortion policies, there will inevitably be substantial gaps and plenty of room for coverage disputes,” wrote Taffae and Manguson. “Most underwriters of traditional types of insurance contend that it is not the intent of these policies to pick up cyber exposures. Changes have been made, and are continuing to be made, to these forms to clarify the intent not to cover cyber exposures.”
The authors cite numerous significant limitations that have been added to the standard Insurance Services Office, Inc. (ISO) CGL policy in the past decade, such as:
- An exclusion for damage arising from damage to or the loss of electronic data;
- A clarification that electronic data is not tangible property (thus, damage to electronic data is not covered property damage);
- An exclusion for liability arising from violation of statutes, regulations or ordinances related to sending, distributing or transmitting information;
- An exclusion for personal or advertising liability arising from chat rooms or bulletin boards owned, managed or controlled by the insured; and
- Limits on standard CGL policies to cover copyright infringement only if the infringement is in an “advertisement,” which is strictly defined and narrowly construed.
Third-Party Cyber Liability Coverage
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.