Lloyd’s denies it has to pay under the terms of the insurance policy, but the university system claims the damages are covered under California rules of policy interpretation. A 2019 legal settlement puts the university on the hook for $7 million and the system’s internal costs are likely substantial.
Disputes such as this are no doubt encouraging the trend toward stand-alone cyber insurance policies, which offer more detailed coverage language.
“The UC Regents allege in a new lawsuit that an insurer is wrongfully denying payment for millions of dollars in losses incurred after cyber attackers obtained access to parts of UCLA Health’s computer network in 2014.
The regents filed the lawsuit Friday in Los Angeles Superior Court against Certain Underwriters at Lloyd’s, London, alleging breach of contract and seeking unspecified compensatory damages.”
The UC Regents allege in a new lawsuit that an insurer is wrongfully denying payment for millions of dollars in losses incurred after cyber attackers obtained access to parts of UCLA Health’s computer network in 2014.
Source: UC Regents seeks millions in reimbursement from insurer over cyber breach