Unusual IBM Breach Could Make Coverage Ruling An Outlier

By Jeff Sistrunk (May 18, 2015, 8:51 PM EDT) -- The Connecticut Supreme Court's ruling that an IBM Corp. contractor isn't insured for $6 million in losses stemming from a traffic mishap that exposed IBM employees' personal information gives insurers stronger footing to argue against coverage for data breaches, but the peculiar facts of the case could limit the decision's effects, attorneys say.

In a closely watched case, the Connecticut high court unanimously found Monday that Federal Insurance Co. and Scottsdale Insurance Co. don't have to cover losses stemming from a data breach that occurred when a cart holding computer tapes with IBM employees' sensitive information fell out of the back...

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