Insurer Says It's Not Responsible for Breach Costs
PRIVACY LAW—U.S.June 7, 2010
A Colorado insurance company has filed a federal lawsuit claiming it is not responsible for reimbursing the University of Utah for costs related to a 2008 data breach, Computerworld reports. Colorado Casualty Insurance Co. was providing breach insurance to the university when sensitive data on 1.7 million patients at the university's hospitals and clinics was potentially exposed, costing the university $3.3 million in breach notification and credit monitoring fees, among other costs. The breach occurred when burglars stole data tapes from an employee of Perpetual Storage, the university's storage provider. Perpetual has filed a motion to dismiss the complaint. A spokesman said, "We obviously think there is coverage."