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Data Breaches and Insurance Coverage

By Ellen Farrell and Kathryn Linsky
September 02, 2014

Editor's Note: With the modern technology that allows businesses to do more things on computers and on other electronic devices, efficiencies can be achieved, but unintended negative consequences can also result. When a breach of the data on these devices occurs and confidential information is accessed by unauthorized persons, the financial consequences to the business entity may be substantial. But when that business seeks defense and indemnification from its insurer, the insurer just might push back.

Last month's article began a discussion of cases that have grappled with the question of whether businesses' insurance policies cover losses brought about by security breaches. Following are more cases that have dealt with the issue.

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