While the decision is favorable to policyholders, companies should not rely on this decision or, in many cases, on their CGL policies to provide coverage in the event of a data breach. As the Fourth Circuit pointed out, although ambiguities in insurance policies are generally construed in favor of the insured, insurers may exclude certain types of coverage under CGL policies. Many CGL policies contain express language excluding losses related to data breaches. All companies should review their current CGL policy to determine whether it provides coverage in the event of a data breach, or consider obtaining separate cyber insurance coverage. Womble Carlyle can assist companies in reviewing existing policies to determine what coverage has already been obtained or where gaps in coverage may exist and in offering solutions to potential cyber liabilities. Contact Information If you have any questions about this update, please contact client alert authors Jay Silver at JSilver@wcsr.com or 919.755.2188, Orla O'Hannaidh at OOhannaidh@wcsr.com or 919.484.2339, or Ted Claypoole at TClaypoole@wcsr.com or 704.331.4910, or the Womble Carlyle attorney with whom you normally work. __________________ Womble Carlyle client alerts are intended to provide general information about significant legal developments and should not be construed as legal advice regarding any specific facts and circumstances, nor should they be construed as advertisements for legal services. 2 .