Court dismisses insurers’ breach claims against Blackbaud over 2020 cyberattack
The plaintiffs, which included Travelers and a group of insurers affiliated with Philadelphia Indemnity, reimbursed their insureds for expenses following the breach, including costs of forensic investigations, legal counsel, constituent notifications, and credit monitoring. Their insureds—more than 100 nonprofit and educational organizations across 35 states and the District of Columbia—used Blackbaud’s software to manage donor and constituent information. The insurers asserted that Blackbaud’s deficient cybersecurity practices and delayed, misleading breach notifications forced their insureds to take costly remedial action, which the insurers then covered under cyber and crime insurance policies.
