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ARTICLE · 20 APRIL 2016

Fourth Circuit Expands Cyber Coverage Under Commercial General Liability Policies

Wilson Elser Moskowitz Edelman & Dicker LLP
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Travelers insured Portal under two CGL policies that were in effect from January 2012 to January 2013 (2012 Policy) and January 2013 to January 2014 (2013 Policy) (collectively, Policies).

United StatesInsurance
Jessica Collier
Jessica Collier
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The United States Court of Appeals for the Fourth Circuit recently affirmed a decision by the United States District Court for the Eastern District of Virginia, Alexandria Division (District Court), finding that Travelers Indemnity Company of America (Travelers) had a duty to defend Portal Healthcare Solutions, LLC (Portal) under commercial general liability (CGL) policies in relation to an alleged data breach event. See Travelers Indem. Co. of Am. v. Portal Healthcare Sols., No. 14-1944 (4th Cir. Apr. 11, 2016) (unpublished). This is a significant decision because it is one of the few appellate decisions addressing coverage under CGL policies for cyber events.

Facts

Travelers insured Portal under two CGL policies that were in effect from January 2012 to January 2013 (2012 Policy) and January 2013 to January 2014 (2013 Policy) (collectively, Policies). Portal specialized in the electronic safekeeping of medical records for hospitals and other medical providers.

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