Spinnaker Insurance Sued Over Hacking-Claim Denial (Correct)

A law firm that was duped into sending a $1.5 million wire transfer to hackers after a phishing attack gave them access to its email accounts is suing Spinnaker Insurance Co. and Cowbell Cyber Inc. for denying its claim.

Tacoma, Wash.-based Connelly Law Offices PLLC alleged that Spinnaker and Cowbell breached their duties under a $1 million claims-made policy providing coverage for security-breach liability.

Spinnaker, the insurer, and claims administrator Cowbell handled the claim in bad faith, failed to make reasonable settlement offers when liability was clear, placed their own financial interests ahead of the insured’s, and breached their duties ...