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Cyber Insurance

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Robert L. Wallan
Partner, Los Angeles
T: +1.213.488.7163
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With the proliferation of regulations governing data security and privacy, and near-daily news reports of computer hacking and privacy breaches, companies that handle sensitive information have become increasingly focused on maximizing their insurance coverage for data security and privacy claims and investigations.

A large and quickly growing market has evolved for insurance that is specifically designed to cover these risks—marketed under names like “cyber insurance.” More conventional forms of insurance—including D&O, E&O, CGL, Crime and Property policies—can also provide valuable coverage for these losses.

Financial institutions, health care companies, retailers and wholesalers, professional service and data management firms, media and technology companies, and others that handle legally protected information increasingly view these sources of coverage as a key asset and cornerstone of their risk management programs.

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But every insurer has its own unique cyber insurance policy forms, terms and exclusions. Privacy and data security breaches are also uniquely challenging to manage, and often give rise to large and hotly contested insurance claims.

Our Insurance Recovery & Advisory team has extensive experience in helping our clients structure and negotiate insurance programs to protect themselves from losses, liabilities, and the high cost of responding to data and security breaches, and to recover from their insurers on privacy and data security claims.

In addition, our attorneys frequently publish and speak on privacy and data security coverage issues in such fora as Financial Times, Risk Management magazine, Law360, Appleman’s Current Critical Issues on Insurance Law, and conferences of the Risk and Insurance Management Society (RIMS).

Representative Experience

Most of our engagements in this area are confidential, but our experience includes:

  • Represented client that manages loyalty programs to recover insurance proceeds for losses and liabilities due to fraudulent exfiltration of gift card redemption codes via a spear phishing attack followed by installation of suspected malware.
  • Assisted with structuring and negotiating insurance programs to protect against cyber loss across a wide range of industries including banking, education, health care, technology, media and entertainment, energy and manufacturing.
  • Advising major multistate car dealership organization on denied claims arising from widespread cyber and ransomware attacks impacting entire U.S. automotive dealership industry.

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  • Representing major energy company on a dependent business interruption claim arising from a cyber event.
  • Negotiated recovery on large cyber insurance claim arising from ransomware attack on international e-Discovery vendor, where hacked data is subject to protective orders mandating confidentiality.
  • Advised numerous Fortune 100 companies on data breach issues.
  • Represented Uber Technologies regarding claims against cyber insurers for loss and liability arising out of a data breach and cyber extortion event.
  • Represented Hallmark Cards on cyber insurance claims due to a recent cyberattack at its affiliate, Crayola.
  • Represented global provider of loyalty programs and identity theft protection products in recovering data breach losses, including lost income during government-mandated shutdown.
  • Represented major media company in securing coverage for losses arising out of two of the highest profile hacks of the last eight years under cyber, CGL and property policies.
  • Obtained coverage for medical center for class action litigation defense related to alleged release of protected health information; secured ruling that such statutory damages are covered under CGL policies.
  • Represented one of the largest convenience store chains in the United States, achieving recovery under crime policy for losses caused by hacking of customer data.
  • Represented major university research hospital in recovering under cyber and D&O policies for eight-figure data security breach claim arising from alleged release of confidential medical information on nearly 20,000 patients.
  • Advised data services company, grocery chain, health technology company and startup in connection with negotiation of internet liability coverage programs.
  • Successfully prosecuted telecommunications provider’s claims against its E&O insurer confirming coverage for class action claims alleging cyber-related activities.
  • Successfully defended numerous retailers in nationwide class actions alleging financial privacy claims under FCRA and FACTA while securing full coverage for defense efforts.
  • Successfully prosecuted coverage claims for a national managed care organization under cyber and professional liability insurance policies for data security breach lawsuits involving over one million patients potentially seeking billions in damages.

Practice Area Highlights

  • Nationally ranked by Chambers USA: Insurance: Dispute Resolution: Policyholder (2018–2024), Insurance in Texas (2014, 2019–2024) and Insurance: Policyholder in Washington, DC (2015–2024)
  • Recognized by The Legal 500 U.S. (2017–2024)
  • Pillsbury is recognized as among the most feared law firms for litigation by BTI Consulting Group.

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  • Team lawyers are lauded by Best Lawyers in America and Who’s Who Legal in the field of insurance
  • Four-time Law360 Insurance Practice Group of the Year (2020, 2016, 2015, 2010)

Resources

2025 MOST FEARED FIRMS

BTI Consulting recognizes Pillsbury as one of the most feared law firms in litigation.

Brochure

Insurance Recovery & Advisory

Blog

Policyholder Pulse

Newsletter

Perspectives on Insurance Recovery - 2016

Factsheet

Pillsbury's Insurance Policy Review Program

Survey

Customized Cybersecurity Assessment—Finding and Fixing Your Vulnerabilities

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