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Maximizing Your Insurance Coverage for Data Privacy Liability

July 27, 2022 Blog
Policyholder Perspective

With news of massive data breaches making headlines in recent years, the handling of personal data has become a focus for legislators and regulators around the world. Compliance with data privacy regulations such as the European Union's General Data Protection Regulation (GDPR) and the California Privacy Rights Act (CPRA) promises to be one of the major challenges for businesses going forward as violations of these regulations present the risk of substantial fines or penalties. 

In order to manage that potential liability, businesses have looked to cyber insurance. However, even when cyber insurance policies expressly state that they cover fines and penalties, whether or not they actually do so depends on whether fines and penalties are ‘insurable’ under the law that governs that coverage. Some jurisdictions prohibit insurance for fines and penalties as against public policy, and if the law of such a jurisdiction is deemed to govern, then even a policy that expressly promises to provide coverage may not protect the insured. Read the full blog post here.

Firm Highlights

News

Chambers USA 2024 Recognizes Farella Braun + Martel Lawyers, Practices

Farella Braun + Martel is pleased to announce that Chambers USA has recognized 16 lawyers and six practice areas in the legal directory’s 2024 edition. Individual California and Western U.S. Rankings: Sarah Bell &ndash...

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BIPA Liability: Existing CGL Coverage May Provide a Lifeline for Policyholders

Developments in the law have increased the potential liability that companies could face under the Illinois Biometric Information Privacy Act (BIPA), but fortunately for policyholders, Illinois case law has also solidified coverage for BIPA...

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Court Reinstates CPPA Enforcement Authority and Confirms No Delay Necessary for Enforcement of Future CCPA Regulations

A recent appellate decision has made clear that the regulations promulgated under California’s groundbreaking consumer privacy law, the California Consumer Privacy Act (CCPA, as amended by the California Privacy Rights Act (CPRA)), are ripe...

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Insurance Market Crushes Wineries and Wine Country Homeowners

We keep hearing about how difficult it is for winery and vineyard owners to get property insurance these days, both for their homes and their wine businesses in California’s wildfire-prone areas. Those who have...

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Publication

Reporting Dispute Claims Within Closely Held Wineries

Many wineries operate as closely held companies, meaning they’re owned by an individual or small group of shareholders, who are often members of the same family. Disputes regarding ownership interests can arise, particularly when directors...

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Regulatory Changes Underway To Address Dwindling California Property Insurance Market

We keep hearing about how difficult it is for our clients to get property insurance these days, both for homes and businesses in Northern California’s wildfire-prone areas. Which, of course, is most of Northern...

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Publication

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? (Part One)

By Jalen M. Brown, Kristin Davis, Shanti Eagle, PeterJ. Georgiton, and John Mark Hart When an insurer accepts an insured’s tender and agrees to provide a defense, it is often an afterthought as to whether...

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Publication

When Can an Insurer Pursue a Malpractice Claim Against Defense Counsel Retained for an Insured? (Part Two)

By Jalen M. Brown, Kristin Davis, Shanti Eagle, Peter J. Georgiton, and J. Mark Hart Part 1 of our two-part article addressed the circumstances in which an insurer can directly pursue malpractice claims against...

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Publication

California AI Proposal Rethinks Consumer Scope and Recordkeeping

The California Privacy Protection Agency will revisit its  draft  regulations for automated decision-making technology on March 8, including use of artificial intelligence to process personal information. Comment periods should be coming soon in 2024...

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Publication

Disputes Between Shareholders May Not Be Governed by Fiduciary Duties but Could Be Covered by Insurance

(As published in Private Company Director ) Disputes regarding ownership interests often arise in the context of closely held corporations, particularly when directors, officers, or majority shareholders sell or acquire ownership interests in the...

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