After the Fourth Circuit held that a commercial general liability (“CGL”) policy could cover a data incident in 2016, confusion arose as to whether CGL policies would continue to cover data breaches. A recent California lawsuit by the smart-TV maker Vizio against two of its insurance companies shows that this confusion also arises when an insured invokes CGL policies to cover litigation arising from alleged data misuse.
The smart-TV maker Vizio has faced multiple proposed class actions arising from the alleged sharing of its customers’ viewing data with third parties. Vizio recently reached a $17 million settlement to resolve multidistrict litigation (MDL) on behalf of 16 million Vizio owners alleging the sale of their data without their consent. Continue Reading Somebody’s Watching Me: A Recent Smart-TV Lawsuit Seeks Insurance Coverage for Privacy Litigation