Cyber Loss May Yet Fall Under General Liability

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Recently, the Fourth Circuit handed down one of the first appellate-level decisions involving insurance coverage for a cyber-related event. The ruling is likely to create ripples among both carriers and company insureds, as it establishes the possibility that, under a general liability policy, a carrier may still be on the hook to cover cyberattacks or data breaches that are the result of a company’s negligence (as opposed to those stemming from a criminal attack, in which the company is the victim). In their Client Alert on the Fourth Circuit’s ruling, colleagues James Bobotek, Peri Mahaley and Benjamin Tievsky break down the ruling and its takeaways.