P.F. Chang’s, a well-known restaurant chain, recently discovered that its cybersecurity policy would not cover various costs for remedying a data breach even though the policy was marketed as providing comprehensive coverage for cybersecurity risks. In P.F. Chang’s China Bistro, Inc. v. Federal Insurance Company, No. CV-15- 01322, 2016 U.S. Dist. LEXIS 70749 (D. Ariz. May 31, 2016), the court granted the insurer’s motion for summary judgment, filed by Federal Insurance Company. While this is among the first cases to address the responsiveness of a cyber policy to a data breach, the opinion serves as a warning to policyholders that wish to obtain truly comprehensive cybersecurity coverage for all costs resulting from a data breach.
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