Design Highlights
- Progressive faces a class action lawsuit for failing to protect personally identifiable information, claiming negligence led to data exposure.
- Erie Insurance is also sued for negligence related to data security issues, with allegations of inadequate protection of sensitive customer information.
- Both companies are accused of mishandling data that could impact policyholders’ financial security and personal privacy.
- Alleged errors related to the Comprehensive Loss Underwriting Exchange (C.L.U.E.) database have raised concerns about data accuracy and security.
- Proposed settlements from both lawsuits are viewed as insufficient to address the potential harm caused to affected policyholders.
In a stunning twist of events, Progressive and Erie Insurance are now facing lawsuits over some serious data blunders. Talk about a major facepalm moment!
For Progressive, it all started when a third-party vendor‘s employee decided to play fast and loose with access credentials. On May 19, 2023, they shared these secrets with unauthorized individuals. As a result, a treasure trove of sensitive data was exposed: names, addresses, driver’s license numbers, and even social security numbers. The whole mess was uncovered when a notice was filed with the Maine Attorney General on August 1, 2023. A whopping 347,100 people were impacted. It’s like a never-ending nightmare. This incident emphasizes the need for organizations to monitor third-party vendors.
The fallout? A class action lawsuit has emerged, claiming Progressive failed to protect their customers’ personally identifiable information (PII). The plaintiffs allege that this breach was not just a fluke but a result of “massive and preventable” negligence. They’re not happy, and who can blame them? Sensitive information is now in the hands of unauthorized parties, risking financial and personal havoc. A proposed settlement of $3.25 million is on the table, but let’s hope it’s more than just a slap on the wrist.
Meanwhile, over at Erie Insurance, things aren’t looking much better. An unusual network activity was detected on June 7, 2025, leading to system outages. It seems a ransomware group, possibly Scattered Spider, set their sights on insurers. Phone lines, emails, and online applications went dark. Erie notified customers of potential PII exposure, but details were as scarce as a unicorn. By June 14, they claimed progress, but still, no word on what really caused the chaos. Erie Insurance has already faced two class action lawsuits due to their negligence in protecting PII.
Two class action lawsuits have already cropped up against Erie. One from an Illinois customer, Neil Plascencia, and another from a former employee in Wisconsin, Amy Haas. Both are seeking $5 million, alleging negligence in protecting PII. Erie’s spokesperson? Radio silent. No comments on pending litigation, which is just great for transparency.
As for Progressive, they’re denying all claims and wrongdoing. They’re sticking to their guns, insisting they did nothing wrong. The court hasn’t ruled in favor of anyone yet, but it’s clear that these data breaches have shaken things up. Organizations that fail to implement proper cyber liability coverage may face significant financial exposure when data breaches occur.
The proposed settlement for Progressive might be a start, but it feels like a Band-Aid on a much larger wound. Time will tell how these cases unfold, but one thing is for sure: trust has been shattered.
