Sony Insurer Seeks 'No Responsibility' in Covering Possible Lawsuits over PSN

[mibuokami]

Galaki said:

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Sony Insurer Seeks 'No Responsibility' in Covering Possible Lawsuits over PSN

Posted July 21, 2011 by Ben Strauss

The ongoing state and federal investigations into Sony for the PSN outage are potentially going to cost Sony something in the neighborhood of hundreds of millions of dollars, and that has insurance firms getting anxious.  One such firm, Zurich American, has filed suit in New York, seeking to break coverage of Sony.

Claiming that it should not be held responsible for claims “asserted in the class-action lawsuits, miscellaneous claims, or potential future actions instituted by any state attorney general,” Zurich hopes to avoid massive payouts in the PSN fallout.  The insurance firm also filed suit against other Sony insurers, “seeking assurances that they would share in any payout should Sony's claim be validated."

Sony is attempting to gain coverage from their various insurers, including AIG, ACE Limited and Mitsui Insurance.  Zurich is fighting back, saying that their policy only covers “bodily injury, property damage or personal and advertising injury."  The current claims, according to Zurich, are in no way covered by the policy.

[Thanks Gamasutra]

I thought the insurers were specifically signed up for the PSN coverage? Weird.

Insurance as a business only makes sense if people do not claim, profit will instantly fall if the insurer needs to actually DO something that it was meant to do! It won't matter if they are covered, they will try to wiggle out regardless.