Insurer Sues to Duck Privacy Suit Against Drug Store Chain

A Hanover Insurance Group Inc. unit sued a Pacific Northwest drug store chain, seeking a court declaration that its policy limited or barred coverage for a proposed privacy class action related to a data breach.

The only coverage available for defense costs and a possible judgment in the underlying suit against Hi-School Pharmacy Inc. is for cyber liability and is limited to $50,000, Hanover American Insurance Co. said in a complaint filed Sept. 6 in the US District Court for the Western District of Washington.

The underlying suit was filed by a former employee of Hi-School whose personal information was ...