Ransomware Victims Get New Path To Coverage In Md. Ruling

By Jeff Sistrunk (January 27, 2020, 8:21 PM EST) -- A Maryland federal judge recently ruled that an embroidery company's property insurance policy covers the replacement of its computer system following a ransomware attack, a first-of-its-kind decision that indicates policyholders can turn to traditional insurance to defray costs associated with hackers' schemes.

In a Jan. 23 order, U.S. District Judge Stephanie A. Gallagher held that State Auto Property & Casualty Insurance Co. must cover National Ink & Stitch LLC's costs to buy a new server and computers after the 2016 ransomware strike. The judge agreed with National Ink that the attack resulted in "direct physical loss of or damage to" the...

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