3 lessons from a data breach lawsuit. Specs Liquor v. Insurance.

Spec’s experienced a data breach that resulted in legal fees. Spec’s was insured and has sued its insurer over the coverage of costs incurred from the data breach.

3 Take aways from a Texas Company with data breach insurance coverage:

• Spec’s wants its insurance company to pay its legal fees for a legal fight between Spec’s and the credit card processor that experienced the data breach
• Insurance companies have become good at covering the initial expenses (notifications, initial legal fees, computer foresenics) of a data breach, it’s these longer term expenses, like litigation, where it gets murky
• Insurance companies have been re-writing general commercial liability policies to expressly exclude coverage for data breaches and instead offering a separate policy

Houston Business Journal | Spec’s lawsuit raises questions on how insurance companies should handle data breaches