Insurers Face Cyber Coverage Setback In 4th Circ. Ruling
April 11, 2016
"Insurers Face Cyber Coverage Setback In 4th Circ. Ruling"
Farella Insurance Recovery Partner Tyler Gerking commented on the Fourth Circuit ruling in Travelers Indemnity Co. of America v. Portal Healthcare Solutions LLC. The court held that Travelers must defend Portal Healthcare Solutions against a class claim that its failure to secure a server caused records to be accessible to unauthorized users, agreeing with a lower court that the security breach is covered under the commercial general liability policy.
In the article Mr. Gerking said, "The court's conclusion on the publication issue, while a fairly easy one to resolve in this case, could help policyholders down the road. The court has made clear that a policyholder need not prove that sensitive information was accessed by the public, only that it was made available to the public."
Link to article (subscription required).