5th Circ. Suggests Insurance May Cover Credit Card Breach

Law360 (July 26, 2018, 12:54 PM EDT) -- On June 25, 2018, in a little-noticed, per curiam unpublished decision applying Texas law, the U.S. Court of Appeals for the Fifth Circuit raised some important questions about the extent to which directors and officers and corporate liability policies may be called upon to respond to cyber breach incidents in which credit card data is stolen by unknown hackers. The case — Spec’s Family Partners Ltd. v. The Hanover Insurance Co. — concerned a broad form of corporate liability coverage, which was the coverage part at issue here. Specifically, the Fifth Circuit reversed the entry of judgment on the pleadings in...

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