Yahoo sues Chubb over refusal to cover potential GDPR fines

Yahoo has filed a lawsuit against its insurer, Chubb's Ace American Insurance unit, for allegedly refusing to cover regulatory fines proposed under the EU’s GDPR. 

In 2022, the DPC in Ireland issued a draft decision regarding Yahoo’s cookie policy, examining the possibility that the company had violated GDPR requirements. Although there is no final ruling in this matter, discussions regarding insurance are already underway. 

Yahoo claims that Chubb must cover the fine under its policy, raising interesting questions regarding the obligation of an insurance company in such cases, particularly as regulators in Europe intensify enforcement and penalties grow. 

The outcome of the case could have wide-reaching implications for companies seeking coverage for data protection risks and for the insurance industry’s stance on regulatory liability related to global privacy laws.

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