Are CGL Data Breach Cases Already Meaningless?

Law360, New York (April 22, 2016, 9:05 PM EDT) -- As detailed in this publication just this week, the Fourth Circuit's decision in Travelers v. Portal Healthcare Solutions is but the latest in a series of decisions addressing coverage for data breach liability under a commercial general liability policy. Others include Recall Total Information Management. v. Federal Insurance Co., Zurich American Insurance Co. v. Sony and Hartford Casualty Insurance Co. v. Corcino & Associates. These decisions make up a small body of case law addressing personal and advertising injury coverage for data breach liability stemming from various circumstances. Portal involved an insured that inadvertently allowed patient records to be uploaded, unprotected, to the internet. Corcino involved similar facts — the insured provided a job applicant patient information for testing purposes who then posted it on an internet help site — with the added twist that the plaintiffs alleged statutory claims that were the subject of an express exclusion in addition to common law claims that were not. Recall Total Information involved a loss of computer tapes containing personal information due to a highway mishap in which the tapes fell out of the back of a van. Sony involved the theft of customer information held by Sony through the hacking into Sony's Playstation network....

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