An Englewood, Colo., insurance company has filed a federal lawsuit contending that it isn’t responsible for reimbursing the University of Utah for $3.3 million in costs related to a 2008 data breach caused by a third-party service provider.

The lawsuit, filed in a Utah federal court by Colorado Casualty Insurance Co., contends that the insurer is not obligated to cover the costs now being sought by the university from the third-party service provider.   Colorado Casualty was providing breach insurance to the third-party provider at the time of the breach.

The nine-page complaint, which seeks a declaratory judgment from the court, offers little explanation as to why exactly the insurer believes it is not obligated to pay the breach related costs sought by the university…This article details their actual losses from the breach and the injured parties lawsuit against the insurance agent for offering them cyber liability coverage. To read the entire article, please click here. You may also download the full Court Documents.