Law360 (September 28, 2018, 9:55 PM EDT) -- A Florida federal court on Friday ruled that a Travelers insurer has no duty to defend a hotel operator’s information technology subsidiary against allegations that it was responsible for a data breach that exposed hotel customers’ credit card data, finding that the claim doesn’t trigger the personal injury coverage in the IT company’s policy.U.S. District Judge Carlos E. Mendoza concluded that IT provider Rosen Millennium Inc. is not entitled to coverage from Travelers unit St. Paul Fire and Marine Insurance Co. for its costs to defend a claim for at least $1.4 million in damages connected to a breach of... In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. TRY LAW360 FREE FOR SEVEN DAYS
A unit of US insurer Travelers is not obliged to defend a policyholder facing a lawsuit over the leak of hotel guests' credit card information. The case involves an American who was charged with fraud after he allegedly used his stolen information for fraudulent purchases. While Millennium had a policy with Travelers' unit St. Paul Fire and Marine Insurance, and while the leaked data constituted covered material, the insurer disputed whether the information was published. Taking precedent from past cases, a Florida federal judge ruled in St. Paul's favour since the policyholder itself didn’t publish the customer information.