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Sony insurers suing for non-liability

Zurich American doesn't want to pay out for data-breach cases

One of Sony's major insurers has sued in a New York court to seek protection from any liabilities arising from cases centred on the PSN data breach, asking judges to rule that it will be exempt from any claims "asserted in the class-action lawsuits, miscellaneous claims, or potential future actions instituted by any state attorney general."

The basis of the case is that Zurich American believes that general cover insurance such as that which it sold Sony doesn't cover costs arising from cyber-warfare and digital attacks, claiming that the policy only covers "bodily injury, property damage or personal and advertising injury."

The insurer is also suing a number of other Sony insurers to try and establish shared responsibility should the court deny the exemption.

"Zurich doesn't think there's coverage, but to the extent there may be a duty to defend it wants to make sure all of the insurers with a potential duty to defend are contributing," attorney Richard Bortnick told Reuters.

55 cases have been brought against Sony in the US as a result of the attacks, some of which have resulted in claims on Zurich's policy by the platform holder.

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Latest comments (6)

Justin Titus Writer 8 years ago
imagine that, an insurance company that doesn't wanna pay for services payed for.
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Kevin Clark-Patterson Lecturer in Games Development, Lancaster and Morecambe College8 years ago
I wonder if hackers or those of importance in future label themselves as 'God like' that acts of God such as natural disasters and security breaches will be exempt from any insurance pay outs.

Surely any government should step in here and NOT allow a precedence to occur from Zurich's actions. It will come down to whether Sony had whole insurance or merely 'health' insurance.
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Matthew Eakins Technical Lead, HB-Studios8 years ago
Clearly exempted under the acts of god complex clause.
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Andrew Jakobs Lead Programmer 8 years ago
@Kevin: you do know that 'acts of god' are removed from all policies a long time ago due to 'the man who sued god', it was even turned into a movie. hehe.. Also it is very hard for a insurance company to prove 'god' exists and therefore could be held responsible..
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Long and short of it, the insurance company got caught out and did not expect such a liability occurring, and thus this has shocked Zurich totally, with a typical result of delaying payout via the courts. Typically typical
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Neil Young Programmer, Rebellion Developments7 years ago
In fairness, I suspect none of us have read the policy, so it's a bit hard for us to make a call on whether sony were covered or not?
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