In the wake of a cybersecurity breach, Connelly Law Offices in Washington State has initiated legal proceedings against its insurers, Cowbell Cyber Inc. and Spinnaker Insurance Co. The suit, filed in the US District Court for the Western District of Washington, alleges a breach of contract and claims bad faith on the part of the insurers for their refusal to honor a $1.5 million claim related to the incident.
The breach, which occurred in June 2024, involved unauthorized access to an employee’s email account, containing sensitive personal information. Connelly Law Offices had previously secured a cyber risk insurance policy from Cowbell Cyber and Spinnaker Insurance, which provided $1 million in coverage specifically for liability arising from security breaches.
As cyber incidents increasingly impact the legal sector, this case underscores the critical role of comprehensive cybersecurity insurance policies and the obligations of insurers to fulfill their contractual duties. Legal professionals monitoring this lawsuit can track the case on Bloomberg Law under the docket 2:25-cv-00302 (Bloomberg Law subscription required).
For further details, please refer to the full article on Bloomberg Law.