In a verdict that runs contrary to recent judicial decisions under similar circumstances, a federal appeals court yesterday upheld a ruling that insurance firm Travelers Indemnity Company of America, under the terms of a commercial general liability (CGL) policy, has a duty to defend its client Portal Healthcare Solutions in a lawsuit stemming from an electronic data breach.
CGL Insurers are surprised by this ruling, as they see this “as a cyber and privacy claim, not a general liability claim.”
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