Ruling Breaks New Ground For CGL Policy Data Breach Coverage Hackings

Peter Selvin of Ervin Cohen & Jessup writes:

A recent case from the 5^th U.S. Circuit Court of Appeals breaks new ground on the question of whether a commercial general liability policy provides coverage for damages arising from a data breach caused by a third-party hacker. Landry’s Incorporated v. Insurance Company of the State of Pennsylvania, 4 F. 4^th 366 (5^th Cir. 2021). In brief, the court in Landry’s held that there was coverage for a data breach where the insured was sued by a credit card processing company for breach of contract.