Sony's Insurance Company Refuses to Pay for PSN Security Snafu

Posted 07/22/2011 at 8:16am | by Paul Lilly

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With LulzSec seemingly running scared and Anonymous pre-occupied with pilfering documents from NATO, Sony can breathe a sigh of relief, especially now that the PlayStation Network is back up and running with beefed up security. Now the only question that remains is who should pay for the damage? Sony's insurance agency is scoffing at the notion that it should be held responsible, likely under the assumption that Sony brought this whole mess onto itself by not taking proper security precautions in the first place.

According to TGDaily.com, Zurich American Insurance is seeking a court ruling that would protect the company from having to give Sony so much as a nickel to cover the billions of dollars the much publicized security snafu cost the company, including having to shut down the PlayStation Network for a extended period.

Details of Sony's insurance policy aren't known, however Zurich says there are clauses in its contract with Sony that prevent it from having to pay for losses due to the security breach. Given that Sony has filed a claim with Zurich, it's safe to say these two company's aren't in agreement over what is and isn't covered. Sony's lawyers can expect to remain busy, not just in this dispute, but in 55 other lawsuits related to the PSN breach.