Policyholder Perspective, Spring 2008

In this issue of Policyholder Perspective:

• Liability Insurance for Data Security Breaches and Consumer Privacy Litigation

Every week, the business pages seem to offer some fresh report of consumers’ private financial or medical information being compromised by lax security. Whether it is the theft of an employee’s laptop containing thousands of private records, a retailer’s website leaving customer credit card numbers exposed, or a company throwing confidential documents in the dumpster instead of shredding them, public awareness of information security and the risk of identity theft has never been greater.

Inevitably, increased attention to information privacy has fueled a corresponding growth in litigation and legislation. The filing of class actions or other litigation following a major security breach has become routine, and some of these cases have resulted in substantial settlements. At the same time, federal and state governments are enacting privacy legislation at an increasing pace, often providing injured parties with new private enforcement rights and monetary remedies.

• Recent Case Developments

Policyholder Perspective, Spring 08 (pdf)