In a Law360 article that uses a recent loss in Arizona federal court by P.F. Chang’s to spotlight common holes in cyberinsurance coverage, Goldberg Segalla partner Jonathan L. Schwartz noted that many insurers offer coverage for the costs of complying with payment-card industry data standards.
But because P.F. Chang’s did not have such coverage, the restaurant chain attempted to get its insurer to cover — under unrelated policy provisions — more than $1.9 million in assessments MasterCard charged to its third-party processing agent after it suffered a data breach.
“These cyberinsurance policies are intended to be sold with very distinct coverage offerings,” said Jonathan, a member of the firm’s Global Insurance Services Practice Group. “If you don’t purchase those offerings, you shouldn’t expect to find them through the back door.”