American International Group Inc. and Axis Capital Holdings Ltd. have been named as the insurance providers for Avid Life Media Inc., the Toronto-based company that owns AshleyMadison.com, according to Bloomberg
The website, recently victim to a cyber-attack that resulted in the release of 37 million members’ personal data, is now facing a lawsuit that seeks more than US$500 million in damages.
Sources familiar with the matter claim that AIG
provided the company’s D&O policies while Axis covered its cyber liability.
and Axis both declined to comment on their involvement with the site, other insurers have stepped forward to remind businesses about the need to continually re-assess their commercial coverage, particularly since many insurers are now seeking policy exclusions as a precaution against risk.
“Numerous class-action litigation cases that have been filed in the AshleyMadison and similar situations demonstrate the need for an analysis of existing insurance coverage,” Kevin Kalinich, leader of the cyber-risk team at insurance broker Aon Plc, told Bloomberg.
Avid Life CEO Noel Biderman resigned quickly after the hack, which has been linked to at least three suicides in the U.S. and Canada.