Loss to Records/Electronic Data

Orloff v. AmTrust Financial, Index No. CV-032757-18/K1 (Kings Co. Sup. Ct. Feb. 13, 2019); Wesco Ins. Co. v. King & Associates, Index No. 650212 (New York Co. Sup. Ct. Aug. 20, 2019)

Plaintiff Jason Orloff brought an action for breach of contract due to the insurer’s failure to pay costs and expenses incurred by him to change his business accounts and passwords. AmTrust moved to dismiss on the ground that the party which issued the insurance policy under which the claim was submitted was Wesco Insurance Company, not AmTrust Financial. Further, AmTrust argued that the named insured under the policy was Kings & Associates Management LLC, not plaintiff. The court granted AmTrust’s motion after plaintiff failed to oppose.

Subsequently, Wesco filed a declaratory judgment action against Kings & Associates Management, asserting there was no coverage for the claim because there was no loss or damage sustained either to “valuable papers and records” or “electronic data” as defined in the policy. The court granted Wesco’s motion for a default judgment after Kings & Associates Management failed to answer the complaint.

Wesco Insurance Company was represented by partner Kevin F. Buckley and special counsel Jodi S. Tesser.


Share This