Although Judge Gallagher’s ruling indicates that some costs tied to ransomware attacks may be covered under traditional property insurance, that doesn’t mean policyholders should shun specialized cyber coverage, attorneys said. A number of insurers offer cyber policies that explicitly cover ransom payments in bitcoin or other cryptocurrencies, which may fall outside the terms of standard property coverage.
“With these ransomware events, it is unlikely you’ll find coverage for every aspect of the loss under a single insurance policy,” said Joshua Gold, chair of Anderson Kill PC’s cyber insurance recovery practice group. “You would find coverage for the ransom payment under your cyber policy, and then when it comes to the expenses for data restoration or new computer components, there may be coverage under a cyber policy or, as here, a property policy.”