Marijuana is becoming big business as its growth rate zooms past even the astronomical dotcom industry growth rate of the 1990s. The industry had nearly $7 billion in 2016 revenue (a 30 percent increase over 2015), and an eye-popping $20 billion in annual revenue is projected by 2021. Since the 2016 elections, 28 states plus D.C., Puerto Rico, and Guam, have legalized marijuana in some form — of these, eight states plus D.C. have legalized its recreational use. But, ... Keep Reading »
Unlike Friendships, Policy Exclusions Are Not Severable In West Virginia
A homeowners insurance policy often covers every member of a family, and many policies state that the insurance applies separately to each insured. The same policies usually exclude coverage for intentional acts. But what happens when one insured is accused of negligently permitting a different, separately-covered family member to cause harm intentionally? Last month, in American National Property & Casualty Company v. Clendenen, No. 16-0290 (W. Va. Nov. 17, 2016), ... Keep Reading »
Circuit Courts Restore Order to Question of Coverage for “Business Email Compromise” Schemes Under Fidelity Policies’ “Computer Systems” Fraud Rider
The financial services industry has long been on the forefront of technological advances in commerce. In the 1950’s, the Bank of America commissioned a consortium of Stanford scientists to develop one of the first commercial applications of the then-newly emerging field of “electronic brains” (aka “computers”). This effort resulted in ERMA (Electronic Recording Machine, Accounting), an automated system used for counting checks. Among other notable advances, this led to ... Keep Reading »
Cybersecurity Awareness Month: Visits From the Ghosts of Claims Past and Claims Future
Cybersecurity awareness month is nigh upon us again, and thus perspective is in order. 2016 brought us the first collection and analysis of the nascent claims history of the burgeoning cyber-insurance market. On August 27, 2016, the National Association of Insurance Commissioners (NAIC) released its “Report on the Cybersecurity Insurance Coverage Supplement,” which provides helpful analysis of NAIC’s first data cull from insurers writing various forms of cyber coverage. ... Keep Reading »
NAIC Exposes Revised Draft Model Cybersecurity Law for Insurers for Public Comment
Insurers are a prime target for hackers as a result of the vast stores of valuable data they maintain. Not all information is created equal, and it varies in value. Hacker services and software, illegal drugs, cyberweapons, and all kinds of other types of stolen, confidential, and compromised information is monetized and traded daily on darknet markets using various forms of cryptocurrency, by governments, hackers, criminals, and businesses. While a stolen credit card ... Keep Reading »
Defining the Contours of Cyber Coverage for Data Breach: a Warning in Arizona
A year ago in this space, we looked at the receding wave of coverage litigation regarding whether various cyber-related exposures were covered under traditional policies, such as CGL and professional liability policies. Deemed “square peg” litigation, those cases were mostly a mixed bag. And, as predicted, since the advent of the now burgeoning cyber-specific coverage market, those cases are largely becoming irrelevant, as insurers have begun to place exclusions in ... Keep Reading »
Eighth Circuit Orders Coverage For Hackers’ Fraudulent Wire Transfer
Financial institution bonds come in various forms, depending on the nature of the insured business (e.g. bank, broker, insurance company). Common forms are fidelity bonds and commercial crime policies. These policies provide first party coverage against losses caused by employee dishonesty, forgery, kidnap, ransom & extortion, computer fraud and other specified financial frauds. These policies are common, and in some cases required by law, for banks, insurers, and ... Keep Reading »
Insuring Cyber Exposure Through a Captive Insurer
Cyber risks have been confounding insurers and policyholders alike as those risks have evolved and expanded in recent years. Indeed, the risks have effectively outgrown the confines of standard commercial insurance coverage, and numerous insurers have developed new products, creating a market for cyber-specific coverages and policies. While predictions about growth in this market have generally been bullish, there are some signs it may be flattening. One recent survey ... Keep Reading »
Grateful Marijuana Grower Scores Coverage Victory in Colorado Federal Court
The refusal of the Senate to fill a Supreme Court vacancy has put gridlock back on the front page, as it leaves important questions about immigration and clean energy unresolved. Uncertainty about federal policy is also affecting other areas of American life, including one of our most popular pastimes. Recently, in The Green Earth Wellness Center, LLC v. Atain Specialty Ins. Co., No. 13-cv-03452-MSK-NYW (D. Colo. Feb. 17, 2016), a federal court in Colorado held that the ... Keep Reading »
As TCPA Class Actions Soar, Issues Emerge in TCPA Coverage for Claims
Both the number of cases under the Telephone Consumer Protection Act (TCPA) and the types of practices that those cases challenge have mushroomed within the last several years. Yet a dedicated form of insurance against TCPA claims has not yet developed. Instead, businesses seeking defense and indemnification of TCPA suits have resorted to traditional policy provisions dealing with property damage, personal and advertising injury, and (more recently) the language of ... Keep Reading »