(Editor's Note: The following article has been contributed by David M. Governo and Corey M. Dennis of Governo Law Firm LLC, an 18-attorney law firm in Boston, Mass.)
No business today is immune from the threat of a costly data security breach. While cyber liability insurance is becoming a recommended element in mitigating the financial exposure associated with such breaches, which are estimated to cost between $3.7 million and $5.5 million per incident, businesses have found coverage under traditional insurance policies in some limited circumstances.
The U.S. Court of Appeals for the Sixth Circuit recently held in Retail Ventures, Inc. v. Nat'l Union Fire Ins. Co. of Pittsburgh, Pa., 691 F.3d 821 (6th Cir. 2012), that DSW Inc., DSW Shoe Warehouse, Inc., and Retail Ventures, Inc. (an affiliated company) were entitled to coverage under a commercial crime policy for a $6.8 million loss resulting from a cyber attack.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
