October 22, 2019

October 22, 2019

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October 21, 2019

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Homeowner’s Policy Did Not Cover Suit Against Insured Accountant Filed by Her Clients to Recover Costs Associated With Protecting Information on a Compact Disc Stolen From the Insured’s Car

While employed at an accounting firm, the insured had a compact disc belonging to the firm stolen from her personal auto. It contained confidential information belonging to her clients. The clients sued her for credit monitor- ing and insurance expenses incurred to mitigate potential misuse of the stolen information. She tendered the defense of the case to her homeowner’s insurance carrier which then filed the present declaratory judgment action seeking a determination it did not need to defend or indemnify the insured. The District Court granted summary judgment in favor of the carrier.

The Seventh Circuit affirmed. The policy did not cover damage for property occupied or used by the insured. It also had a business operations exclusion. The Court held both provisions supported the trial court’s determination no coverage existed. Nationwide Insurance Co. v. Central Laborers’ Pension Fund, 704 F. 3d 522 (7th Cir. 2013). 

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Heyl Royster serves clients in every county in Illinois. We have offices in six major population centers in Illinois - Peoria, Springfield, Urbana, Rockford, Edwardsville, and Chicago - which allows us to appear in any Illinois state or federal court quickly, effectively, and cost-efficiently for our clients. Our offices collaborate with each other and with our clients to achieve client goals. Our statewide practice has earned Heyl Royster a reputation for innovation, excellence, and professionalism and brings our clients a specialized knowledge of...

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