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Insurers Deny Coverage for Breach Notice Costs (and why companies should consider cyber insurance coverage and why brokers should offer it)

Posted on June 11, 2010 by Dissent

David Navetta comments on the litigation involving the University of Utah, Perpetual Storage, and Colorado Casualty Insurance Co.  You may wish for a scorecard to keep all the players straight:

It was recently reported that an insurance carrier (Colorado Casualty Insurance Co.) denied coverage (and filed a lawsuit) for the $3.3 million in costs the University of Utah incurred to provide notice of a security breach involving the records of 1.7 million patients from the University’s hospitals. You can find a copy of Colorado Casualty’s declaratory judgment action complaint here. The University also filed its own counter claim, cross-claim and third party claim. As discussed further below, the University’s cross-claim is against Perpetual Storage (the service provider that allegedly lost the data) and its third party claim is against Perpetual Storage’s insurance broker (the broker that placed the insurance coverage with Colorado Casualty).

Read more on InformationLawGroup.

Category: Breach IncidentsCommentaries and AnalysesEducation SectorSubcontractorTheft

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