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Court rules insurance won't cover Home Depot data breach costs

After hackers stole Home Depot customers' card information, financial institutions sued over losses from reissuing physical payment cards.

By Avalon Zoppo | January 17, 2025 at 10:08 AM
The appellate court’s decision noted that the commercial general liability policies precluded coverage of “damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data.” (Credit: Diego M. Radzinschi/ALM)

The U.S. Court of Appeals for the Sixth Circuit on Monday upheld a judge’s ruling that insurance companies did not have to cover Home Depot’s defense and settlement costs stemming from a data breach, pointing to an electronic data exclusion provision in their policies.

The Sixth Circuit’s decision noted that Steadfast Insurance Co. and Great American Assurance Co.’s commercial general liability policies precluded coverage of “damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data.”

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