The Seventh Circuit Court of Appeals has ruled on a coverage dispute between a CPA and her home insurer over client data that went missing in her possession.
The staff accountant had a CD with 30k individual names and social security numbers of a fund she was auditing stored in her automobile. When the disc went missing the fund paid over $200,000 to provide credit monitoring to the persons involved and came after her to reimburse them.
The auditor filed a claim under her home insurance policy, which the court of appeals ruled did not have to provide coverage.
BrokerLiability.com reminds it’s clients that with the growing costs of losing confidential data virtually all insurers have excluded coverage for these claims under standard policies policies. Work with an expert broker to ensure the coverage you need is place.