A Pasich Attorney Discusses “Wasting Insurance Policies” in GovInfoSecurity Interview
Following a data breach affecting 2.4 million individuals and an ensuing class action litigation, healthcare technology firm CaptureRx has claimed that it is facing bankruptcy. While it has insurance that responds to the lawsuit, the insurance is in the form of a so-called “wasting insurance policy.” In an interview with GovInfoSecurity, a Pasich attorney explained that wasting insurance policies take the opposite approach of most liability policies and allow policy limits to be reduced by defense expenditures.
“In practice, this means that expensive litigations can reduce and even eliminate whatever insurance proceeds might be available to fund a settlement,” they said. “Companies should work with their brokers to understand whether an insurance policy treats defense costs as outside or inside of limits to avoid any surprises.”
Read the full GovInfoSecurity article here.