Cyber Insurance Litigation Trends Amid Rising Ransomware Attacks

As ransomware attacks have increased, many affected businesses have turned to their insurance carriers to offset the staggering monetary impact caused by those incidents. The growing number of attacks and claims has brought with it a rise in resulting litigation, with courts across the country considering issues of first impression regarding the scope of coverage for ransomware attacks under different types of policies. In a guest article, Cohen Ziffer attorneys Alexander Sugzda and Cindy Jordano discuss how courts have recently addressed coverage for losses suffered by policyholders after a ransomware attack and practical considerations for companies to ensure their policies provide broad coverage for this type of incident. This article should be required reading for all fund managers, who should ensure their ransomware coverage is sufficient given the sizeable target for ransomware and other cyber attacks the private funds industry presents. See “How to Prevent and Handle Disputes Over Ransomware Insurance Claims” (Mar. 25, 2021). See also our two-part series for fund managers to address a ransomware attack: “First Steps to Take When Responding” (Mar. 17, 2022); and “Necessary Precautions, Compliance Considerations and Risks to Mitigate” (Mar. 24, 2022).

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