CHICAGO – Lloyd’s of London is suing Chicago tech staffing firm, alleging a cyber risk policy does not require them to indemnify it from a claim against two workers for breach of an employment contract. 

Certain Underwriters at Lloyd’s, London, severally subscribing to policy number ESD00104475, filed a lawsuit Dec. 15 in Cook County Circuit Court against Wunderland Group LLC, Michael Bawcum, Sharam Khosravipour, Advanced Personnel Inc. and Teksystems Inc.

According to the complaint, Bawcum and Khosravipour, account managers for Advanced Personnel and Wunderland Group, worked for a competitor, TEKsystems, until leaving in the middle of 2015. 

In a September 2015 lawsuit, TEKsystems accused the two of violating their non-disclosure agreements by using its trade secrets and proprietary information in their new jobs with Advanced Personnel.

Although Lloyd’s had issued a cyber, privacy and media risks policy to Advanced Personnel, with Wunderland Group listed on the insured schedule, Lloyd’s alleges it is not liable to pay any settlement or penalties in the TEKsystems suit. 

According to Lloyd’s, the policy only covered disclosure of trade secrets on social media or other electronic platforms, rather than breach of an employment contract.

Lloyd's seeks a declaratory judgment stating it is not obligated to indemnify the defendants for breach of contract. It is represented by attorneys James H. Kallianis Jr. and Laurence J. Tooth in Chicago, and by Erik M. Kowaleswky in San Francisco, all of Hinshaw & Culbertson LLP.

Cook County Circuit Court Case number 2015-CH18139

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