A federal appeals court upheld a ruling against insurance firm Travelers Indemnity Company of America, saying, under the terms of a commercial general liability policy, the company should have defended a client in a lawsuit resulting from an electronic data breach, SC Magazine reports. Travelers was found by a three-judge panel in the 4th U.S. Circuit Court of Appeals in Virginia to have failed to prove its two CGL policies with its client, Portal Healthcare Solutions, excluded the defense of a 2013 class-action lawsuit filed when Portal publicly posted the records of Glens Falls Hospital patients. The ruling goes against decisions in Connecticut and New York where CGL policies were determined not to cover damages from cyberattacks. “I think it’s a shocker to CGL insurers to see a decision like this,” said Robert Bregman, a research analyst. “CGL insurers don’t really think that they should be on the hook for this type of claim. They see this as a cyber and privacy claim, not a general liability claim.”
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