Sony Coverage Denial Could Be Boon For Cyber Insurers

Law360, New York (February 25, 2014, 8:30 PM EST) -- A New York judge adopted a rare standard Friday when he freed two insurers from defending Sony Corp. units against litigation over the massive PlayStation cyberattack, an unexpected ruling that could convince reluctant policyholders to take the plunge and buy data breach policies.

New York Supreme Court Judge Jeffrey Oing ruled from the bench that Zurich American Insurance Co. and Mitsui Sumitomo Insurance Co. did not owe defense coverage to Sony Corp. of America and Sony Computer Entertainment America LLC under policies providing coverage for oral or written publication of materials that violate a person's right to privacy. The judge held...

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