Swipe Right on Insurance: Risks and Coverage Implications for Mobile Apps and Social Media Platforms

Consumers--and therefore businesses-- rely on mobile apps to perform an ever-widening range of functions.  As with any new technology, there are risks involved.

Often, mobile app users input highly sensitive data, including financial and health details.  Mobile app use has accordingly triggered new waves of regulatory actions and civil litigation.  The FDA has provided examples of how its authority may apply to mobile medical apps, while the FTC and other regulators have brought app-related enforcement actions based on alleged violations of privacy.  Mobile app users have brought their own suits.

This session will cover risks associated with the use of mobile apps and social media, including types of insurance that may respond to these risks.  We will address: (1) risks for businesses that conduct financial transactions and/or interact with customers via these platforms; (2) potential coverage under traditional commercial and cyber policies; (3) what can be learned from past coverage disputes over web-based businesses; and (4) whether policyholders need to consider new insurance options tailored to liabilities arising from their use of mobile apps and social media.