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Advisen Publishes Wiley Rein Article on Data Breaches and CGL Policies

February 12, 2014

Three members of Wiley Rein’s prominent Insurance Practice have authored an article for Advisen on commercial general liability (CGL) coverage issues related to data breaches.  The article, titled “Data Breaches and CGL Policies:  The Emerging Coverage Picture for Private Suits and Credit Card Processor Demands,” was published today in Advisen’s Front Page News section.

CGL policies are not designed to provide coverage for the rising number of breaches in which hackers infiltrate companies’ databases to steal confidential customer information, according to the article by Insurance Appellate Group chair Laura A. Foggan, partner Dale E. Hausman, and associate Matthew W. Beato.

“Nonetheless, coverage for data breaches under CGL policies is being tested by policyholders facing liability for data breaches,” the authors wrote.  “As the number of data breaches skyrockets, there will be ample opportunity for courts to continue to consider these issues.”

The Advisen article by Ms. Foggan, Mr. Hausman, and Mr. Beato can be found here.