Cyber Coverage Ruling Doesn't Address Key Issue

Mediation Ruled First Step in Cyber Coverage Case
– Business Insurance

Business Insurance interviewed Manatt's Stephen Raptis, a partner in the firm's Insurance Recovery practice, for an article on last week's Columbia Casualty Co. v. Cottage Health System ruling.

In a closely-watched cyber coverage case, the ruling did not address the central issue, which was the acceptability of an exclusion in the policy issued to Cottage Health. A judge instead ruled that the insurer, Columbia Casualty, should have pursued alternative dispute resolution before filing suit.

"It's obviously not a ruling on the merits," said Raptis.

Raptis said that the ruling still leaves unanswered the acceptability of the best practices exclusion. "The court is applying as written a provision in the Columbia policy that requires parties to basically mediate disputes before they file a lawsuit," he said.

Read the article here