Zurich American Ins. Co. v. Sony
Year 2015
Court New York Appellate Division, Manhattan
Case Number 651982/11
  • Contract Interpretation
  • Data Breach/Cyber Liability
  • New York

Insurance coverage for data breach should be available under a commercial general liability policy’s “publication” provision. Under New York law, coverage should be available for situations where the insured is alleged to have intentionally published material and when it negligently permits a third party to do so. UP reminded the court that insurance coverage should turn on both the plain language of the policy and the reasonable expectations of the insured. Accordingly, insurers may not invent “phantom exclusions” to escape liability.