AIG Cyber Coverage Case Follows Established Insurance Law

By Huiyi Chen and Jan Larson (December 23, 2019, 3:49 PM EST) -- In the insurance context, new loss mechanisms are not uncommon, especially in the rapidly changing area of cyber liability insurance. In some instances, these new loss mechanisms risk muddying the waters for the otherwise well-established interpretation of decades or even centuries-old stalk provisions in insurance policies.

A recent insurance decision in the U.S. District Court for the Southern District of New York involving the cybercrime of email spoofing, SS&C Technologies Holdings v. AIG Specialty Insurance Co., should give comfort to policyholders (and put insurers on notice) that courts continue to hold tight to fundamental principles in insurance and contract laws, such...

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