Court Rules No Cyberinsurance Coverage


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Although not related to any cyberintrusion, a recent ruling related to cyber coverage involved a claim filed was that the defendants "knowingly withheld this information and refused to turn it over" but the "policy covers errors, omissions, and negligent acts." On May 11, 2015 US District Judge Ted Stewart (Utah) denied a motion for partial summary judgment in the case of Travelers Property Casualty Co. of America et al. v. Federal Recovery Services Inc. et al. since there no errors, omissions, or negligent acts that "Travelers has no duty to defend" the defendants who refused to turn over data it held. The defendants were:

….in the business of providing processing, storage, transmission, and other handling of electronic data for its customers.

This case was important since it is one of the first cases reviewing cyberinsurance coverage as pointed out by Judy Greenwald's article "Insurer not liable for cyber policyholder’s defense"

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