Sony faces insurance crisis after PSN outage

By Andrew Yoon, Jul 21, 2011 4:30pm PDT

Fifty five. That's the number of class-action lawsuits supposedly filed in the US against Sony for its handling of a security breach that took down the PlayStation Network for over a month. Since then, the company has come under scrutiny, and has been under investigations by both state and federal regulators. The fallout is expected to cost Sony hundreds of millions of dollars... and one of its insurers wants no part in offering coverage.

Zurich American filed a suit, asking the New York court system to find it has no responsibility in covering Sony from claims "asserted in the class-action lawsuits, miscellaneous claims, or potential future actions instituted by any state attorney general." It is also suing Sony's other insurers, Mitsui Insurance, AIG, and ACE Limited, "seeking assurances that they would share in any payout should Sony's claim be validated," according to a Gamasutra report.

Sony is attempting to get coverage from the general liability policy written for Sony Computer Entertainment of America (SCEA). However, Zurich claims that the policy only covers "bodily injury, property damage or personal and advertising injury," and says that none of the current class-action lawsuits apply to the breadth of coverage.

While PlayStation Network operations continue as normally for consumers, it's clear that Sony has a long road ahead before it can get past the consequences of the PSN hack.

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