SDV Insights

CT First Supreme Court to Address CGL Cyber Coverage Debate


Gregory Podolak recently published a brief article for the Insurance Coverage Litigation Section of the American Bar Association website.

The Connecticut Supreme Court recently published its eagerly anticipated decision in Recall Total Info. Mgmt., Inc. v. Fed. Ins. Co. (Recall III), No. 19291, 2015 WL 2371957, at *1 (Conn. May 26, 2015), one of the first decisions of its kind addressing commercial general liability (CGL) coverage for certain types of cyber exposures. The case received attention for its interpretation of “publication” in the personal and advertising injury coverage of a standard CGL insurance policy. The court held the insurers were not required to defend or indemnify the insureds for damages stemming from the loss of computer tapes containing the personal information of approximately half a million IBM employees because even though there was evidence the computer tapes fell into the hands of an unknown third party, there was no publication.

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