Businesses continue to experience multimillion-dollar losses from ransomware, wire fraud and phishing attacks. While some policyholders have found remedies through crime insurance, most insurers argue that cyber thefts are intangible and not a so-called direct loss covered by the policy.
Pamela Hans, a managing shareholder of Anderson Kill's Philadelphia office, told Law360 that most courts have found that cyber theft constitutes a direct loss covered by a crime insurance policy. But she cautioned that policyholders need to carefully read their policy language and work closely with brokers when getting the policy and handling a cyber loss.
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