Pillsbury & Coleman managing partner Ryan Opgenorth recently secured coverage for a technology company in a dispute over the development of a customized digital platform for processing healthcare claims. The insured faced allegations that the platform failed to perform as advertised and that it resulted in over $150,000,000 in overpayments, lost profits, and other damages. The claim was immediately tendered to the insurance carrier pursuant to a cyber insurance policy that provided claims-made coverage for “Technology Wrongful Acts.” After a year-and-a-half of pushing back on the carrier, we were able to recover the full amount of the insured’s losses.
Cyber insurance policies, like the one discussed above, often provide company specific coverage. The coverage often extends to breach of contract claims and other professional liability claims. The policy language, however, is not always so clear. There can be confusing “claims-made” provisions that require the insured to report the claim to the carrier within a certain time period to trigger the coverage. There can also be confusing coverage for “Technology Wrongful Acts” that incorporates certain policy limitations and exclusions. Pillsbury & Coleman routinely walks its clients through their policies so that they understand their coverage and can manage their risks.
In an era where digital infrastructure underpins almost every aspect of business operations, cyber insurance is a necessary part of a company’s insurance program. As companies increasingly rely on digital platforms, cloud services, online transactions, and remote work environments, their exposure to malware, ransomware, and other cyber threats has grown exponentially. When those threats turn into liabilities, Pillsbury & Coleman will ensure that your company is treated fairly and honestly by its insurance carrier and is provided with the defense and indemnity insurance coverage it deserves when faced with a “Technology Wrongful Act.”