COVID-19 UPDATE from Bellas & Wachowski

Articles Posted in Chicago Small Business Lawyers

cyber-security-1805246_1280-300x200

Cyber Security Insurance

The sudden expansion of remote work arrangements in the wake of the COVID-19 crisis has created a buffet of opportunities for would-be cyber criminals. And the newly reconfigured, decentralized satellite workplaces in people’s homes look to be with us for some time.   In addition to protecting themselves from the network vulnerabilities created by these off-site offices, businesses need to undertake a thorough review of their cyber insurance policies to ensure that if a malicious actor causes them harm, they are protected on the fiscal front.

Cyberattacks have surged in recent months because of the much greater use of personal devices, exponential expansions of access points, and inability to centrally control data. But many cyber insurance policies do not completely protect the policy holder from intrusions such as data breach, network shutdown, and civil or regulatory actions.

Chicago Business Lawyer George Bellas answers questions for business owners.
Updated August 9.

The Chicago area and Illinois business owners are facing a number of challenges and the CoronaVirus pandemic is threatening the continued viability of their business.   Here are some of the more frequently questions asked by business owners.

  • Paycheck Protection Program Forgiveness

Protecting Data while Working Remotely

Cyber Security Issues while working remotely.

Does your cyber liability insurance cover data breaches that occur while employees are working at home, using their personal devices such as tablets and laptops?

There’s no time like the present to look into this issue, with most employees telecommuting and hackers perhaps sensing new opportunities to do what they do—and in fact, cyber intrusions have been on the upswing in recent weeks.

An arbitration agreement is a contract, in which two or more parties agree to settle a dispute outside of court.  Usually, an arbitration agreement is a clause in a larger contract. The arbitration clauses are often subjects to hotly disputed litigation, stemming from the vague verbiage and possible inconsistencies with other parts of the contract.  One of such issues – the admissibility of the “Wholly Groundless Exception” – was decided by the Supreme Court in January in the case of Henry Schein, Inc. v. Archer & White Sales, Inc , 586 U.S. __ (Jan. 8, 2019).  This is a tricky issue for those in the trucking industry who include arbitration clauses in their contracts with drivers.

What Is A Wholly Groundless Exception?

A “wholly groundless exception” was born out of the “delegation clauses” ordinarily found in arbitration agreements.  A delegation clause represents an agreement between parties that an arbitrator, not the court, will determine the threshold issues of enforceability of the arbitration clause and the scope of the arbitration agreement.  In other words, it is up to an arbitrator to decide whether, according to the contract or the rule of law, an issue may be decided by arbitration or needs to be determined by a judge.  These clauses were held to be valid by the Supreme Court in 2010 in Rent-A-Center, West, Inc. v. Jackson, 561 US 63 (2010). Since then, several circuits decided that this provision must be limited; thus creating a so-called “wholly groundless exception” to the delegation clause. This exception lets parties avoid compelling arbitration in cases where the claims are so obviously not within the scope of the agreement, that it would be a waste of time to go through arbitration before filing a lawsuit.