Insurers Grow Tentative About Coverage For Cloud Users

Law360, New York (November 13, 2012, 9:46 PM EST) -- Insurers are starting to scrutinize coverage for companies using third-party data services, seeing cloud providers as especially vulnerable to hacking attacks, and with cyberpolicy language constantly evolving, attorneys say policyholders should pay closer attention to whether their cloud-related losses would be covered in the event of a breach.

Last year, hackers reportedly used's cloud service to launch a cyberattack that compromised the account data of more than 77 million Sony Playstation users. But that much-publicized data breach hasn't slowed a trend of companies turning to remote data storage and handing over more and more sensitive data to cloud providers....

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