Insurer Wants Out of Clients’ Consumer Privacy Suits
By Jeffrey Benzing | September 12, 2013 5:33 pm

OneBeacon American Insurance Company doesn’t want to defend Urban Outfitters Inc. and Anthropologie Inc. in a string of customer privacy lawsuits.

Consumers are suing in California, Massachusetts and Washington, D.C. over the company’s practice of collecting zip codes during credit card transactions — a practice they say is forbidden in those jurisdictions.

In a lawsuit filed Tuesday, OneBeacon said the retailers’ insurance doesn’t cover those privacy issues.

“OneBeacon has no duty to  defend Urban Outfitters in connection with the ZIP Code Actions because the ZIP Code Actions do not allege “personal and advertising injury,” the Tuesday complaint said.

A general coverage policy covering both Urban Outfitters and subsidiary Anthropologie has a $1 million personal and advertising limit and a $2 million general aggregate limit.

Additional umbrella coverage has a $25 million each occurrence limit and a $25 million general aggregate limit.

The Minnesota-based insurer is asking a federal judge to absolve it of any obligation to defend the Urban Outfitters.

If the judge finds that OneBeacon’s policy applies, the insurer is asking that rights and obligations  be defined in court.

The suit is 2:13-cv-05269 in the Eastern District of Pennsylvania.

RELATED POSTS:

Comments are closed.