Abstract

The cost of ransomware to businesses is estimated to have doubled since 2019 to $20 billion, according to Coveware. Policyholders turn to their insurance policies to recover losses that average more than $230,000 per incident. In the case discussed, the carrier denied a policyholder’s claim as being outside the computer fraud provisions of the commercial crime portion of the policy. Two lower courts sided with the carrier, but the

Indiana Supreme Court ruled in favor of coverage. This is a significant win for policyholders seeking coverage for losses under policies not sold as “cyber insurance.” The article discusses the decision and the precedents cited in an area of litigation that only promises to expand as ransomware and similar digital crimes proliferate.

Author

Scott Godes and Andy Detherage were counsel to United Policy-holders, which submitted an amicus brief in favor of granting transfer and reversing the lower court decision, in the Indiana Supreme Court decision referenced in this article. Messrs. Godes and Detherage are partners in Barnes & Thornburg LLP.

About
The Journal on Emerging Issues in Litigation is a co-production of HB, Fastcase, and Law Street Media. You can also hear the complementary (and complimentary) Emerging Litigation Podcast wherever podcasts appear. For questions, contact Tom Hagy, Editor in Chief, at Editor@LitigationConferences.com.