Sorry, Your Hacked Software Is Not an Insured “Physical Loss:” Ohio Supreme Court 

by

Bits and bytes do not count…

“Over the course of a three-year court battle, Owners (Insurance Company) asserted that (client) EMOI’s September 2019 ransomware attack lacked a physical dimension and accused the developer of attempting a runaround of its business property policy’s exclusion of ransomware costs. The justices agreed with the insurance company.

‘Software is an intangible item that cannot experience direct physical loss,’ wrote Justice Melody J. Stewart.”

Mark Sauter

Mark Sauter’s insights on the financial, policy and security elements of cyber insurance are based on years of experience in the investment banking, media and business worlds. Co-author of the McGraw Hill university textbook “Homeland Security: a Complete Guide,” Sauter was also a consultant to one of the world’s largest software companies and served as a US Army Special Forces and infantry officer.

See also  What Happens When Ransomware Prevention Fails? Eos Venture Partners Bets on Hour-One Ransomware Response from Fenix24