HNRK Coverage Corner

On December 27, 2022, the Ohio Supreme Court issued a decision in EMOI Servs., LLC. v. Owners Ins. Co., 2022-Ohio-4649 (Ohio 2022), holding that losses resulting from damage to an insured’s software were not covered under the “Electronic Equipment” endorsement of a property insurance policy.

The insured, EMOI Services, is a computer software company whose product “provide[s] medical offices with service and support for setting appointments, record keeping, and billing.”  EMOI fell victim to a ransomware attack and was forced to pay a $35,000 ransom in exchange for ...

On February 6, 2023, Justice Louis L. Nock of the New York County Supreme Court issued a decision in Wesco Ins. Co. v. Nunez Dental Servs., P.C., 2023 NY Slip Op 30373(U), holding that a criminal acts exclusion barred coverage for a lawsuit alleging violations of the rights of privacy and publicity under the N.Y. Civil Rights Law, despite the fact that the insured was never convicted, or even charged with, a crime.

The underlying lawsuit alleged that the insured, Nunez Dental, misappropriated the image of the plaintiff’s image to advertise Nunez’s dental services.  Among other ...