Bradley partner Alex Purvis was quoted in TechNewsWorld on the need for businesses to update their current “commercial general liability” (CGL) policies to adequately cover cyber risks. An appeals court recently upheld a lower court decision that ruled that Portal Healthcare’s CGL policy, issued by Travelers Indemnity, should cover the court costs of a data breach lawsuit involving Portal. Despite this decision, businesses should not be optimistic that their own CGL policies will cover the gaps in existing coverage.
“What you see now in most standard liability insurance policies like CGLs is that insurance companies are excluding coverage for liability that arises from a data breach,” said Purvis. “What’s unique about the Portal decision is that the policy did not have that type of exclusion,” he explained. “It may be one of the few remaining policies without that exclusion.”
The complete article, “Insurance Industry Buzzes Over Data Breach Ruling,” first appeared in TechNewsWorld on April 21, 2016.