Target Seeks $74M in Data Breach Reimbursement from Insurance Company
Target has paid banks $138 million to settle claims made by banks stemming from the retailer’s massive 2013 data breach. Of that total, $74 million has not been reimbursed by the company’s insurers, and now Target has gone to court to force insurance companies to pay up.
The numbers come from a lawsuit filed this week against ACE American Insurance Co., now part of the Chubb Corp. In the suit, Target says that it has been in discussions with ACE for more than a year, but has reached no resolution on claims that ACE has so far refused to recognize.
Target paid the banks to reimburse expenses the financial institutions incurred in canceling and reissuing physical payment cards. In total, Target says that it had about $292 million in expenses related to its data breach, about $90 million of which have been offset by insurance.
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