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Excess Insurer Must Face $4M Data Breach Coverage Suit

Law360, Los Angeles (October 16, 2017, 9:38 PM EDT) -- A California state judge on Friday ruled that Cottage Health System's excess insurance carrier must face the hospital network's suit seeking coverage for more than $4 million in data breach-related costs, rejecting the insurer's argument that the action is premature because Cottage's primary insurance policy hasn't been exhausted.

Certain underwriters at Lloyd's of London, which issued an excess cyber liability policy to Cottage, had argued that it should be released from the hospital operator's breach-of-contract suit because its coverage won't be implicated until primary insurer Columbia...
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