Data Breach Fallout: Target Sues Insurer Chubb

Target Corp. has sued a unit of insurer Chubb Ltd., alleging it failed to indemnify the company for a $138 million dollar settlement reached with financial institutions. The settlement was for claimed costs related to credit card replacements, following the massive 2013 data breach that is said to have exposed card data of 110 million Target customers. Targets maintains the card replacements should trigger coverage under its general liability policies because they constitute “loss of use of tangible property that is not physically inured.”