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.

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button