Judge forces insurer to help small business to clean up after a crippling ransomware attack
At least one insurance company will cover the costs from a cyberattack against one of its clients. A Maryland federal judge on Thursday ruled that an Ohio insurer must cover the costs following a ransomware attack that forced a client to replace much of its technology. State Auto Property & Casualty Insurance is on the hook for losses incurred by National Ink & Stitch, a Maryland screen printing business, after a 2016 hack resulted in “direct physical loss or damage” of National Ink & Stitch’s property. No dollar figure has been set yet. The embroidery company had sought $310,000 in damages from State Auto, which has a $1.3 billion market cap. The summary judgment decision from Judge Stephanie A. Gallagher, of the U.S. District Court of Maryland, comes amid ongoing skepticism with the way insurance companies have waded into data security incidents, which are difficult to predict. As a number […]
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