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Liberty Mutual Insurance tells Schnuck Markets its insurance policy doesn’t cover data breach lawsuits and costs

Posted on August 16, 2013 by Dissent

If their insurer gets their way, the beleaguered Schnuck Markets will find itself without help from its insurance carrier in paying litigation costs and other data breach-related costs.

Liberty Mutual Insurance Company has informed Schnuck Markets that it is not responsible to cover costs of the eight lawsuits that were filed in the wake of a breach that impacted 2.4 million payment cards. Nor, it claims, is it responsible for other costs Schnuck incurred from banks and a payment services company.

This is not the first time we’ve seen an insurer claim that a general liability policy does not cover data breaches, and it can serve as a useful reminder of understanding your insurance coverage.

MainJustice.com has the details on this dispute.

Category: Business SectorOf Note

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