Target sues insurer for up to $74 million in 2013 data breach costs

guest · Nov 21, 2019

Target sues insurer for up to $74 million in 2013 data breach costs
Suit says insurer failed to cover $74M for issuing new payment cards
November 19, 2019
http://www.startribune.com/target-s...-million-in-2013-data-breach-costs/565169292/

Target is suing its longtime insurance company for denying claims to reimburse Target for tens of millions of dollars it has paid out for new payment cards as part of settlements over the retailer's 2013 data breach.

The lawsuit against ACE American Insurance Co., based in Pennsylvania and now part of the Chubb Corp., was filed Friday in U.S. District Court in Minnesota.
In it, Target notes that it has paid out a total of $138 million, including attorneys' fees, to banks to settle claims related to its data breach.

While some of the costs were paid for or reimbursed by insurers, the Minneapolis-based retailer said at least $74 million that it paid to settle claims over the costs of replacing payment cards has not been picked up by insurers.
Target argues that its general liability policy with ACE should have covered those costs because the policy defines property damage as including "loss of tangible property that is not physically injured."

"That is precisely this case," Target said in the lawsuit. "Target was held liable for the loss of use of plastic payment cards that were not physically injured."
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Target's data breach in November 2013 was one of the biggest data breaches of its kind at the time, but has since been followed by many others. A hacker installed software on Target's computer network and was able to glean the payment card information of 40 million customers and the personal information of 60 million customers.
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Target sues insurer for up to $74 million in 2013 data breach costs

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