POLITICO Quotes AG Deal Diary Post on 4th Circuit Data Breach Ruling

POLITICO’s “Morning Cybersecurity” column quoted a recent AG Deal Diary blog post regarding a 4th Circuit Court of Appeals decision involving insurance companies and their requirement to cover data breach losses.

The judge in Travelers Indemnity v. Portal Healthcare Solutions, as POLITICO wrote, ruled that Portal’s commercial general liability policies with Travelers required the insurer to defend the company. In discussing the implications of the decision, the Akin Gump team, which included cybersecurity, privacy and data protection heads Michelle Reed, David Turetsky and Natasha Kohne, as well as senior counsel Jo-Ellyn Sakowitz Klein and associate Lauren York, wrote, “While the Portal decision is a big win for companies, its impact will likely be limited by the CGL (commercial general liability) policies currently being issued.”

The blog post also noted, “Data breaches present unusual circumstances and consequences for CGL policies. Millions of individuals can be affected by a single data breach that may have existed for years undetected. Given this uncertainty, most insurers have tightened up CGL policies to specifically exclude data breaches.”

To read the full blog post, please click here.