One of Sony Corp’s insurers has asked a court to declare that it does not have to pay to defend the media and electronics conglomerate from mounting legal claims related to a massive data breach earlier this year.
The dispute comes as demand soars for “cyberinsurance,” with companies seeking to protect themselves against customer claims and associated costs for data and identity theft.
How to write such policies has become a huge subject of debate in the insurance industry.
Zurich American Insurance Co asked a New York state court in documents filed late on Wednesday to rule it does not have to defend or indemnify Sony against any claims “asserted in the class-action lawsuits, miscellaneous claims, or potential future actions instituted by any state attorney general.”
A Sony spokesman in Tokyo said his company does not comment on pending litigation.
Zurich American, a unit of Zurich Financial Services, also sued units of Mitsui Sumitomo Insurance, AIG and ACE Ltd, asking the court to clarify their responsibilities under various insurance policies they had written for Sony.
“Zurich doesn’t think there’s coverage, but to the extent there may be a duty to defend it wants to make sure all of the insurers with a potential duty to defend are contributing,” said Richard Bortnick, an attorney at Cozen O’Connor and publisher of the digital law blog CyberInquirer.
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