This week Rosen Millennium Technology Group, the sister company to Rosen Hotels & Resorts, was sued by its insurance company, St. Paul Fire & Marine, which is denying coverage for a data breach that was discovered in 2016. Visa, MasterCard, and American Express have issued hefty fines against Rosen and the company may incur additional expense if customers affected by the data breach pursue any available causes of action. The underlying data breach occurred when customers’ credit card information was compromised after an unauthorized user installed malware on Rosen’s payment-card network.
Many companies believe that commercial liability insurance protects a company affected by a data breach. Often times this is not the case. Even some cyber liability policies contain exclusions for the type of penalty assessed by the credit card companies.
Do not let your company suffer a multi-million dollar loss that could be insured against with the right policy and the right lawyer negotiating the policy terms on your behalf.