Chubb Ltd. does not have to reimburse P.F. Chang's for costs charged the restaurant chain by its credit card processor in connection with a 2014 data breach under its cyber policy, a federal court ruled.
Policyholder attorney Robert D. Chesler, a shareholder with Anderson Kill P.C. in Newark, New Jersey, said he believes this is the first ruling on a cyber insurance policy, and is important because it could signal a wave of litigation between cyber insurers and policyholders.
Chubb Ltd. unit Federal Insurance Co. sold a Cybersecurity by Chubb policy to Scottsdale, Arizona-based P.F. Chang's China Bistro Inc. corporate parent Wok Holdco L.L.C. with effective dates from Jan. 1, 2014, to Jan. 1, 2015, according to the Tuesday ruling by the U.S. District Court in Phoenix in P.F. Chang's China Bistro Inc. v. Federal Insurance Co.
To read the article: Chubb scores victory in key cyber ruling