In what may be the first finding that a general liability policy will cover some data breach losses, a U.S. District Court has ruled that Target can recover settlements it paid to banks in connection with a 2013 breach. (Credit: Craig Lassig/Target Corp.)
The U.S. District Court in St. Paul has reconsidered its prior decision and ruled that Target Corp. can recover settlements it paid to banks in connection to a 2013 data breach under its general liability policy from its insurer, ACE American Insurance Company.
In 2013, Target discovered that a hacker had stolen payment card data and personal contact information of individuals with Target payment cards. This data breach included payment cards. As a result, the banks that issued those cards canceled the cards and issued replacements. The issuing banks incurred costs when they issued the replacement cards, and sought compensation for those costs from Target. Target settled the issuing banks' claims.
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