Insurance Policy’s Statutory Rights Exclusion Does Not Apply to Data Breach Claims
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On October 7, 2013, the United States District Court for the Central District of California held that a general liability insurance policy covered data breach claims alleging violations of California patients’ right to medical privacy. Hartford Casualty Insurance Co. v. Corcino & Associates, CV 13-03728-GAF (C.D. Cal. Oct. 7, 2013). The court rejected the insurer’s argument that coverage was negated by an exclusion for liabilities resulting from a violation of rights created by state or federal acts. The decision also rejected an attempt commonly made by insurers to exclude coverage for statutory penalties.

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