Sony Deal Emboldens Insureds In Data Breach Coverage Rows

By Jeff Sistrunk (May 1, 2015, 7:21 PM EDT) -- While Sony Corp. of America's settlement with Zurich American Insurance Co. in litigation over the PlayStation Network cyberattack forestalls long-sought appellate guidance on data breach coverage, experts say the deal will encourage policyholders to fight harder for coverage in similar disputes.

The entertainment giant and insurers Zurich and Mitsui Sumitomo Insurance Co. disclosed the resolution of the coverage case in court documents filed Thursday, two months after a New York appeals panel heard arguments in Sony's challenge to a landmark trial court decision freeing the insurers from covering the breach. 

Both policyholder and insurer-side attorneys had eagerly awaited the panel's opinion...

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