Corporate Insurance Blog

In her article, Michaels Has Edge In Data Theft Coverage Suit, Attys Say, author Bibeka Shrestha writes about an insurance coverage dispute relating to cyber risks, including coverage for putative class actions allegedly relating to the theft of credit card and debit card information. The policyholder and the insurance company dispute whether there is insurance coverage for the claim under commercial general liability (CGL) insurance policies.

The article opens:

Arch Insurance Co. told an Illinois federal court Friday that it doesn’t have to defend Michaels Stores Inc. against a slew of putative data breach class actions because no private information was published, but policyholder attorneys say courts have in the past broadly interpreted what counts as “publication.”

The article then explains the basis of the dispute: “The coverage dispute involves seven putative class actions claiming that Michaels failed to prevent criminals from tampering with PIN pad terminals at its stores and stealing customers’ credit and debit card information.”

Ms. Shrestha quotes me in the article. She also notes my views that there is favorable, “policyholder-friendly” rulings regarding personal and advertising injury coverage for privacy, cybersecurity, and data breach claims under CGL insurance policies. The quotes and references all are after the jump, and the full content is available if you or your firm subscribe to the Insurance Law360 site and its content.

Want to read the other opinions and thoughts offered on the subject? Then click on over to Michaels Has Edge In Data Theft Coverage Suit, Attys Say to read the entire article.

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