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ARTICLE · 05 JUNE 2020

Novel Case On Data Exclusion Interpreted In Favour Of Insureds

An Ontario judge recently interpreted a data exclusion in favour of the insureds, ordering the insurer to defend claims arising out of an alleged website security breach.

CanadaInsurance

An Ontario judge recently interpreted a data exclusion in favour of the insureds, ordering the insurer to defend claims arising out of an alleged website security breach.1 A website owned by Family and Children's Services of Lanark, Leeds and Grenville ("FCS"), was breached when an unauthorized party downloaded and published documents stored in a secured section of the website, which contained personal information about individuals who had been the subject of FCS investigations. A broadly worded claim was subsequently brought against FCS, alleging damages resulting from defamation, breach of privacy and other causes of action. Laridae Communications Inc. had provided advice to FCS on the design and security of FCS's website. FCS issued a third-party claim against Laridae.

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