Sony insurer doesn’t want to pay for data breaches


One of Sony's insurers has asked a judge to rule it is not liable for losses related to the infamous hacks which hit the electronics firm earlier this year.

Zurich American Insurance has gone to court in New York hoping for a decision declaring it will not have to pay out for anything related to the attacks.

Sony said it would pay out to parties who suffered financial damage as a result of the hacks and the subsequent shut down of the PlayStation Network.

The hacks in April saw over 100,000 users' data stolen, with credit card details possibly taken.

In court papers, Zurich American said 55 class-action complaints had been lodged in the US against Sony, which has been investigated by state and federal regulators over the breach.

Zurich American said its policy only covers the Sony unit for "bodily injury, property damage or personal and advertising injury," Reuters reported.

No claims under those banners have been made in any of the class-action lawsuits, according to the insurance firm.

Sony has declined to comment on the proceedings.

Earlier this year, Sony reported a 1.97 billion (260 billion) net loss for the end of the financial year, blaming the results on disruption caused by the hacks as well as the Japanese earthquake.

Read on for our feature on how ethical hackers can help companies like Sony shore up their cyber defences.

Tom Brewster

Tom Brewster is currently an associate editor at Forbes and an award-winning journalist who covers cyber security, surveillance, and privacy. Starting his career at ITPro as a staff writer and working up to a senior staff writer role, Tom has been covering the tech industry for more than ten years and is considered one of the leading journalists in his specialism.

He is a proud alum of the University of Sheffield where he secured an undergraduate degree in English Literature before undertaking a certification from General Assembly in web development.