IT Company’s Privacy Violation Suits Leave Insurers on the Hook

A Swiss Re AG unit and an Argo Group International Holdings Ltd. unit must pay for a software company’s legal defense costs in four lawsuits alleging privacy rights violations because the company’s insurance policy covers multimedia-related wrongful acts, a California federal court ruled.

North American Capacity Insurance Co. and Peleus Insurance Co. breached their duty to defend FullStory Inc., a data-tracking company, in the underlying lawsuits, Judge George H. Wu of the US District for the Central District of California said Tuesday. The judge also granted FullStory’s motion for summary judgment on the insurer’s claim of statutory bad faith.

FullStory ...