Insurer Sues Schnucks To Avoid Covering Security Breach Costs

Photo courtesy of Creative Commons
Photo courtesy of Creative Commons

Liberty Mutual Insurance Co. filed a federal lawsuit against Schnuck Markets Inc., saying it won’t pay the potential tab for eight lawsuits that accuse the St. Louis grocer of failing to safeguard the payment card data of customers whose cards were hacked earlier this year.

Liberty seeks a judgment that frees it from any liability associated with the data breach, which affected an estimated 2.4 million cards used at Schnucks stores between December 2012 and late March of this year. The insurance company claims it is only responsible for covering physical damage, not data, and only up to a certain amount.

Read more from the St. Louis Post-Dispatch


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