Yet another report of a dispute caused by the lack of standardized terms in cyber liability insurance. The District Court ultimately ruled that insurer Federal Insurance did indeed need to cover the loss.
“In Yoshida Foods International, LLC v. Federal Insurance Company, the policyholder suffered a ransomware attack demanding payment of $107,074.20 in cryptocurrency to recover encrypted data. Because Yoshida lacked access to cryptocurrency, one of its executives paid the ransom from his personal cryptocurrency account and was later reimbursed by the company…Federal refused to cover the ransomware payment, arguing among other things that the payment was not a ‘direct loss’ insured by the computer fraud coverage grant because the company’s reimbursement…”
Source: Does Your Cyber Insurance Policy Cover a Ransomware Attack?