Previously published in Anderson Kill's Policyholder Alert, May 2015
A brand new decision from a federal trial court in Utah is a sobering reminder that just because you have purchased “cyber” insurance does not mean that your insurance company will pay a cyber-related claim.
In Travelers Property Casualty Company of America et al. v. Federal Recovery Services et al., the insurance company sued its policyholder for a declaration of no coverage under a CyberFirst liability insurance policy it had sold. The policyholder was in the business of processing and storing data for its clients. In this case, the policyholder was storing and processing data for a client that offered fitness center memberships.
To read the full article: Beware of Holes in Your Cyber Insurance Policies