Insurers Face Cyber Coverage Setback In 4th Circ. Ruling

Law360, Los Angeles (April 11, 2016, 10:43 PM EDT) -- The Fourth Circuit has given a boost to policyholders seeking coverage for data breaches under traditional insurance by ruling Monday that a class complaint over Portal Healthcare's failure to safeguard patient information satisfied a Travelers policy's "publication" requirement even though no third parties accessed the data.

Travelers had argued that because Portal did not intend to publish the medical information and it doesn't appear anyone accessed it, its policy does not cover the underlying allegations. (Credit: AP) In an unpublished opinion, a panel of the Fourth Circuit affirmed the decision of a Virginia district court, which held in August 2014 that...

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