McGuireWoods Insurance Recovery Blog

McGuireWoods Insurance Recovery Blog

Insights for Policyholders

Joshua Davey

Joshua Davey Josh has extensive experience litigating complex disputes on behalf of clients in the financial services industry and is co-chair of the firm’s CFPB publishing committee. In recent years he has focused heavily on mortgage-related litigation and consumer finance issues. Josh also practices in the areas of commercial litigation and insurance recovery.

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Friday’s Massive Malware Attack – Cyber Insurance and the Importance of IMMEDIATE Notice to Insurers

Cyber Insurance
On Friday, May 12, 2017, a massive ransomware attack swept across the globe. As of the date of this post, the attack reportedly had infected more than 100,000 organizations in 150 countries. The attack continues to propagate in different and more malicious forms and it is likely some of our clients have been impacted. This… Continue Reading

Federal Court: Computer Fraud Provision Does Not Cover Fraudulent Debit Card Transactions Conducted Over the Telephone

Crime Insurance, Policy Interpretation
Last month, the Northern District of Georgia issued a strongly pro-insurer decision holding that a policy insuring computer fraud did not provide coverage for $11.4 million in fraudulent debit card redemptions made over the telephone.  In InComm Holdings, Inc. v. Great Am. Ins. Co., No. 1:15-cv-2671-WSD, 2017 WL 1021749 (N.D. Ga. Mar. 16, 2017), the… Continue Reading

Four Questions to Ask Before Renewing Your Policy

Best Practices, Risk Management
Most business insurance policies are issued with one-year policy terms, creating a natural opportunity for businesses, their counsel and risk managers to re-evaluate coverage each year at renewal time. Many companies fail to take advantage of this opportunity and simply renew their policies each year without considering whether their insurance needs – or the coverages… Continue Reading

Insurance Coverage for Lost Profits Arising from Cyber Attacks on the U.S. Power Grid – Contingent Business Interruption Coverage for the Internet of Things

Business Interruption, Cyber Insurance
The Washington Post reported last week that Russian hackers had penetrated the U.S. utility grid through Burlington Electric Department, a Vermont utility.  Although the utility later clarified that the attacked computer was not connected to the grid and that the connection to Russia was not confirmed, hundreds of news sources picked up the story, demonstrating… Continue Reading

D&O Insurance: Five Things Your Company’s Policy Might Cover Which Could Surprise You

Uncategorized
Most companies have Directors & Officers Liability (“D&O) insurance.  As the name of the policy suggests, these polices provide coverage for lawsuits against a company’s directors and officers for acts performed in the course of their duties.  But policyholders are sometimes surprised to learn that D&O policies may provide coverage in a number of other… Continue Reading

Best Practices for Getting Notice Right

Best Practices
All insurance policies have provisions requiring timely notification of a loss or claim to the insurance carrier. Commercial general liability policies, for example, provide that the policyholder “must see to it that we are notified as soon as practicable of an ‘occurrence’ or an offense which may result in a claim” and that “[i]f a… Continue Reading

Subcontractor’s Defective Work Covered Under CGL Policy, Iowa Supreme Court Holds

Construction Insurance, General Liability, Policy Interpretation
Last month, in a lengthy decision over the dissent of three justices, the Iowa Supreme Court joined the ranks of state high courts to conclude that defective work performed by a subcontractor is covered under the standard Commercial General Liability (CGL) policy held by almost all general contractors today. The case arose from the construction… Continue Reading

Fourth Circuit Affirms Denial of Coverage for Accidental Gunshot Injury

Duty to Defend, Duty to Indemnify, Policy Interpretation
On April 14, the Fourth Circuit held that an insurer owed no defense or indemnity coverage for an underlying personal injury suit against the policyholder’s employee, a security guard who accidentally shot a friend while socializing at the business off-hours. The court concluded that the firing of the gun was not within the scope of… Continue Reading

8th Circuit: Financial Institution Bond Provides Coverage for Fraudulent Wire Transfers

Additional Insured Coverage, Bad Faith, Business Interruption, Crime Insurance, Cyber Insurance, Financial Institution Bonds
With policyholders facing increased losses from hacking and business email compromise, insurers are fighting hard to escape their obligations under financial institution bonds, crime policies and cyber insurance policies. In a case that bolsters policyholders seeking coverage for digital fraud, the U.S. Court of Appeals for the Eighth Circuit held that a bank’s financial institution… Continue Reading

Fourth Circuit Affirms Insurance Coverage for Cyber Claim Under CGL Policy

Cyber Insurance, General Liability
In a decision issued April 11, the Fourth Circuit added to a small but growing body of case law across the country finding coverage for cyber claims under traditional general liability insurance policies. In Travelers Indemnity Co. v. Portal Healthcare Solutions, LLC, No. 14-1944, − F. App’x − 2016 WL 1399517 (4th Cir. April 11, 2016),… Continue Reading