Ripe For High Court: Article III Standing In Data Breach Cases
By Ken Kronstadt ( December 17, 2018, 2:58 PM EST) -- For many companies, the prospect of a costly and highly publicized data breach motivates them to purchase cyber liability insurance to offset the costs associated with such an event, including costs stemming from lawsuits that invariably follow after a data breach. Unfortunately, insurance coverage is not certain, even where a company has a cyber liability policy in place. Coverage for a lawsuit where personal identifying information, or PII, has been exposed but has not yet been misused, however, is particularly uncertain in light of divergent court decisions over the past two and a half years interpreting the requirements for Article III standing following Spokeo v. Robins.[1] As a result, unless and until the U.S. Supreme Court resolves the split of authority — which it may now be poised to do — insurance coverage under cyber liability policies for such a breach may not be available for many policyholders....
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