Insurer Sues Over Breach Payments

Friday, March 31, 2017 @ 03:03 PM gHale


Insurance is becoming a bigger issue when it comes to cybersecurity and one case in point is when St. Paul Fire & Marine Insurance filed a lawsuit it was not responsible for paying any costs related to a data breach.

The lawsuit, filed in the U.S. District Court Middle District of Florida, Orlando Division, is against Rosen Millennium Technology Group, a sister company to Rosen Hotels & Resorts with which it shares several key executives, according to a published report.

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While the case is outside the manufacturing automation sector, the ramifications fall within the cybersecurity insurance genre which includes all industries. It also points to the idea if a company has insurance, it needs to know the specifics of the insurance and where it needs to bolster the coverage, if at all.

St. Paul said in the court documents Rosen Resorts ended up hit with multiple fines totaling $2.4 million from Visa, MasterCard, American Express and others over the point-of-sale data breach first reported by Rosen in March 2016. After those fines, the hotel tried to collect using its commercial general liability policy to pay the debts.

In the suit, St. Paul’s is claiming a data breach and any ensuing losses are outside the scope of the commercial general liability policy and it wants a judgement by the court confirming this stance.

Rosen Hotels was not immediately available for comment.



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