The court said that insurance companies should not cover the cost of recovering data after a security breach.

The Ohio Supreme Court ruled that an insurance company is not required to cover the cost of a software company to recover data after a security breach.

Earlier, a lower court ruled that Owners Insurance violated its contract with software company EMOI when it refused to cover the costs of the data breach.

A lawyer for the owners, Erin Moore, argued that the physical data itself was never lost or damaged — it was just unavailable for a while.

“It’s like losing the keys to a safe deposit box or a safe. In this situation, all the things that are in this box are still there.”

In a decision earlier this week, a state high court overturned a Second Circuit Court of Appeals ruling that held that the owners acted in bad faith by failing to pay the costs incurred to recover the broken data.