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"Hello, Mr. Jones. Did you just try to make a $10,000 jewelry purchase in Brazil?" To put it mildly, that is not the type of question that want your customers-- or as an insurance company, the customers of your policyholder-- to receive. All too often, however, despite the best security efforts, data breaches of sensitive personal information, like credit card data, do occur.

The insurance industry sells a variety of differing products designed specifically to provide coverage for these types of claims and losses. But, would liability for such a data breach be covered by the backbone of ...