Recent Florida Federal Court Decision Reaffirms “Publication” Requirement for CGL Coverage for Data Breaches

By Eric Stern and Andrew Lipkowitz  As an update to our New York Law Journal Article from March 5, 2018, a recent decision from the U.S. District Court, Middle District of Florida, reaffirms the rule (followed by several other courts), that there is no coverage for a data breach under the standard Commercial General Liability Policy unless the insured is responsible for the act of “publication.”  In St. Paul Fire & Marine Ins. Co. v. Rosen Millennium, Inc., 17-cv-540-Orl-41GJK (M.D. Fla. Sep. 28, 2018), the insured, Rosen Millennium, Inc. (“Millennium”) sought coverage under two consecutive Commercial General Liability (CGL) policies issued by St. Paul for claims arising out of a data breach.  Millennium provided data security services for a parent company, Rosen Hotels & Resorts, Inc.  (“RHR”).  In February 2016, RHR became aware of a potential credit card breach at one of their hotels, and it was discovered…

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