Connelly Law Advances Suit Over Data Breach Coverage Denial (1)

Spinnaker Insurance Co. and its adjuster Cowbell Cyber Inc. must face a law firm’s lawsuit alleging the cyber insurance companies breached a contract by failing to pay the $1 million policy limit to indemnify the firm for losses arising from a cyber-security incident.

Plaintiff Connelly Law Offices PLLC had the better argument at the motion-to-dismiss stage that its policy with Spinnaker covered an incident in which the firm was duped by hackers into wiring $1.5 million related to the settlement of an unrelated lawsuit to a fraudulent financial account, Judge John H. Chun of the US District Court for the ...