Conn. High Court Upholds IBM Data Breach Coverage Denial

By Jeff Sistrunk (May 18, 2015, 11:47 AM EDT) -- The Connecticut Supreme Court on Monday affirmed a lower court's decision axing insurance coverage for more than $6 million in losses stemming from a 2007 highway mishap that exposed the sensitive information of 500,000 IBM Corp. employees.

In a brief per curiam opinion, the state high court held that Federal Insurance Co. and Scottsdale Insurance Co. don't need to cover losses tied to a data breach incident that occurred when a cart holding computer tapes fell out of the back of a transportation contractor's van near a highway exit ramp. The tapes contained Social Security numbers, birth dates and contact information...

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