Sony's insurer refuses to pay for data breach lawsuits

Posted by Emma Woollacott

One of Sony's insurers has filed suit against the company, saying it's not liable for legal costs relating to the massive breach of Sony's servers earler this year.

Zurich American Insurance has asked a New York state court 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".

In April, Sony suffered a massive data breach - one of the most significant ever - in which personal details of more than 100 million users were compromised.

Dozens of class actions have been filed since by disgruntled customers, and other court cases could arise from pending investigations by state and federal regulators.

But Zurich's lawsuit claims that Sony's policy doesn't cover the area of the business that suffered the breach. Nor does it cover the type of damage that occurred - all that's included, it says, is 'property damage', 'bodily injury', 'personal injury' and 'advertising injury'.

Indeed, it says, there are clauses in the policy specifically ruling out cover for such an incident.

Zurich is also suing Mitsui Sumitomo Insurance, AIG and ACE to clarify their responsibilities under various insurance policies they had underwritten for Sony, says Reuters.