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Laura Foggan Discusses Cyber Coverage Issues and Commercial General Liability Policies

Risky Business Blog
August 26, 2015

Laura A. Foggan, chair of Wiley Rein’s Insurance Appellate Group, was interviewed in a Q&A published yesterday in Risky Business Blog about cyber coverage issues with respect to commercial general liability (CGL) policies. This is the first of two Q&As.

The discussion focused on the introduction of Insurance Services Office, Ltd. (ISO) exclusions addressing data breach and cyber exposures, but Ms. Foggan noted that policyholders should “be mindful that even CGL policies without exclusions weren’t written for cyber coverage.” When asked about how the courts have ruled on CGL coverage for cyber issues, Ms. Foggan said that although courts have been split on the issues, some recent high-profile cases have found no coverage existed. “An interesting one was the Recall Total Management Case in Connecticut. Tapes containing private information of IBM employees (Recall Total is an IBM contractor) fell out the back of a truck. The claims were to regain costs associated with notification and remedial measures, and the decision was that Coverage B was not implicated,” she noted. 

Ultimately, coverage will depend on the policy, Ms. Foggan said. Her advice: “I think we can agree: ‘read your policy’ is fundamental to any advice. In CGL policies, limitations in coverage grants, as well as exclusions, may bar coverage in cyber loss settings.”

To read the entire Q&A, click here.