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NY: Insurer won’t have to cover Five Guys’ data breach

Posted on February 18, 2016 by Dissent

From the read-your-policy-carefully dept., Eric Anderson reports:

The operators of several Five Guys restaurants in the Capital Region won’t be able to collect damages from their insurance company after their computer network was breached in late 2011, the state Appellate Division ruled Thursday.

RSVT Holdings, the restaurant operator, had sought to be reimbursed for losses by Main Street American Assurance Company, after a third party, Trustco Bank, sought damages after reimbursing its own customers whose debit card numbers had been stolen in the breach.

Schenectady County Supreme Court had denied the insurer’s motion to dismiss the complaint. Thursday’s decision reversed that, pointing out that RSVT’s policy specifically excluded electronic data from covered losses.

Read more on Albany Times Union. Some of this site’s coverage of the incident can be found here.

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