Early Data Breach Insurance Case Discusses Cyber Policy Coverage For Traditional Risks

Last May, we told you that the " waiting has ended" for courts to start weighing in on cyber insurance policies, as the District of Utah issued one of the first federal court decisions construing such a policy in Travelers Property Casualty, et al. v. Federal Recovery Services, Inc., et al., No. 2:14-CV-170. Although the claims at issue were not the sort of data breach and cybersecurity liability claims for which policyholders eagerly anticipate guidance, it was, as we noted, an important step in understanding how a court may approach these policies. In the first weeks of 2016, the Travelers court revisited the May 2015 decision, and affirmed its prior findings in favor of the insurer.