Sony's Insurer Says It Shouldn't Have To Pay For Cost Of PlayStation Network Hack
from the sony-swims-alone dept
Butcherer79 points to even more problems for Sony in the aftermath of the massive hacking of the PlayStation Network. It seems that Sony was expecting its insurance provider, Zurich American Insurance, to cover any costs. Zurich American Insurance apparently has other ideas:Zurich American Insurance has now gone to court in New York seeking a declaration that it does not have to help Sony with current or future legal action related to the data breach.Sony has indicated that it expected Zurich to cover any such fees, but Zurich is saying no way, no how. Apparently, Zurich says that its contract with Sony doesn't even cover the parts of the business that were hacked, and other clauses in the deal show that this isn't Zurich's problem at all.
Legal papers filed by Zurich reveal that 55 separate class action lawsuits are pending in the US because of the breach.
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Filed Under: hack, insurance, lawsuits, playstation, playstation network
Companies: sony, zurich american insurance
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Techdirt take: But, users still /have/ their "stolen" identities!
By the way, wrangling over liability is STANDARD technique to avoid paying out promptly: they put money in interest-bearing escrow accounts and minimize losses, while hedging risks through other insurance underwriters.
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Re: Techdirt take: But, users still /have/ their "stolen" identities!
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Re: Re: Techdirt take: But, users still /have/ their "stolen" identities!
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Re: Re: Techdirt take: But, users still /have/ their "stolen" identities!
http://www.techdirt.com/articles/2009091 0/0331426151.shtml
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Re: Techdirt take: But, users still /have/ their "stolen" identities!
You get a B+ on your trolling.
Try a little harder and that could be an A.
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Re: Re: Techdirt take: But, users still /have/ their "stolen" identities!
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Re: Techdirt take: But, users still /have/ their "stolen" identities!
No sympathy for game players? That's a little... callous to say the least.
No arguments on the liability wrangling. Writing a huge check is obviously worse than taking a gamble on only having a write a much smaller check for your lawyers. Also not sure if or why you'd expect to get resistance on that either.
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Re: Techdirt take: But, users still /have/ their "stolen" identities!
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We're covered!
I worked at an extended warrantee company, and I've had to tell people that repairs weren't covered. This would be the one time that I would enjoy it.
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Easy answer.
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Easy answer.
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It seems like Sony
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I'll accept that
Why should they have to pay for the damages of Sony having it's PSN hacked? Isn't there some exception in insurance contracts if the party had it coming?
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Re: I'll accept that
This is all predicated on the event in question being covered. I wouldn't get far on that claim if I only had third party insurance.
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Re: Re: I'll accept that
If you only have have liability coverage and it is stolen they won't cover it at all.
Most of the so called "Hacks" were results of Sony failing to to implement basic security procedures to secure their networks, much like locking the door on the car you left running but leaving the window rolled down.
This is Sony's mess they failed to take reasonable precautions.
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Re: Re: I'll accept that
And there's the key, there were reports that Sony wasn't keeping their servers patched and up-to-date. I also seem to remember Sony admitting they hadn't applied an update in some of their ecommerce software and that was part of how they attackers got in. If that's true, then the insurance company may have an out, because Sony wasn't following standard security practices and essentially, from a legal standpoint, were asking for it.
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Re: Re: Re: I'll accept that
This is the captcha on th pro.sony.com site.
It is not a jpg, but just html/css with a jscript disabling the right mouse button. Of course even with the right mouse button disabled you can still view the source code.
I think this says it all about Sony security practices...
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Re: Re: Re: Re: I'll accept that
Spare a thought for the poor bot that doesn't *have* a right mouse button to click and look at the source... snap.
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Re: Re: Get Out Of Paying
Any time you might want to pay an insurance premium, ask yourself, "Am I actually buying any cover at all?" Very often, the answer is "no". Insurance companies always turn hostile come payout time. Do you really want to pay someone who is guaranteed to be hostile if you ever really need them?
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Re: Re: Re: Get Out Of Paying
- All police officers are corrupt thugs.
- All insurance companies will be hostile if you make a claim.
- All (insert profession here -- like lawyer or real estate agent) are thieves and liars.
There are valid reasons why people have these impressions. But it is a shame that a few members of the various groups have tarnished group reputations to such a degree that otherwise highly intelligent people stoop to such broad-brush characterizations.
I have been helped by cops and lawyers. I have made more than one claim to insurance companies and never had anything but polite and friendly assistance -- and no argument about payout.
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Dear Sony...
If you were a company of integrity you would care far more about the users injured by your neglectful actions than the costs associated with doing business, but you've finger pointed, blamed everyone but yourself for the ills that have befallen you. If the situation were reversed, you would gleefully be telling the other party that they should have found that clause discounting that particular part of the product from the insurance/warranty program. I would hope this would be a teaching moment, one where you realize how much your users mean to you and cause a change in the way your corporation associates with and views your clients and end users. Based upon your past actions, this looks unlikely and seems that it would only escalated the douchiness that your company now possesses.
Wishing you the best in future network security, for your users sake.
AW
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Muwahahahahaha
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I've got to agree with the insurers
I'm sure if they're a little short on cash that they can just empty the accounts of their Cxx-level executives (who are personally responsible for this) or sell off a few of their extra homes, luxury cars, stock accounts, etc. There's plenty of money there.
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