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Technology Errors and Omissions Liability Coverage
The cyber liability insurer brought an action against the insured seeking a declaratory judgment that the insurer had no duty to defend the insured for…
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The cyber liability insurer brought an action against the insured seeking a declaratory judgment that the insurer had no duty to defend the insured for claims arising from the insured’s refusal to return electronic data to its customer. This case is Travelers Property Casualty Company v. Federal Recovery Services, 2015 WL 2201797.
Federal Recovery Services is in the business of providing processing, storage, transmission, and other handling of electronic data for its customers. One of the customers, Global Fitness, entered into a servicing retail installment agreement with Federal to process member accounts and transfer the members’ fees to Global Fitness. Later, Global Fitness informed Federal that it was transferring its business to another company and requested Federal to return the member accounts data.
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