NEW YORK, Feb. 18 – A New York intermediate appellate court ruled on Feb. 18 that claims against an insured for the alleged negligent handling of the electronic data of customers were not covered.
In RVST Holdings v. Main Street America Assurance Co., the liability policy in question provided for defense and indemnity to RVST for liability arising out of direct physical loss to tangible property. The policy, however, excluded losses relating to electronic data. The intermediate appellate court, giving the language in question its plain meaning, ruled that the insurer did not have a duty to defend or indemnify RVST from claims relating to RVST’s alleged negligent handling of electronic data.
RVST Holdings, Inc. v. Main Street America Assurance Co.,(N.Y. App. 3rd Dept., Feb. 18, 2016)
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