Check out our detailed report on the cyber insurance lawsuit Fortune 500 company Sinclair Inc. has filed against CCC/CNA and Starr Indemnity, claiming the cyber insurers each owe the broadcaster $10 million for losses from a 2021 ransomware attack.
Both insurers deny the allegations, now before a Maryland federal court. But Sinclair’s claims in the suit are ugly. The company says CCC/CNA literally said it was sending a $10 million claims check overnight, but the check never arrived and CCC/CNA eventually went silent for months before claiming it actually did not owe a thing. Bold face in image below are CCC/CNA’s responses to the Sinclair allegations, in unbolded type.
According to Sinclair, CCC/CNA initially agreed the hack had cost the broadcaster at least $42 million (Sinclair claimed total losses were at least $70 million), but based on further analysis from its forensic accountant Lowers Forensics International, CCC/CNA asserted the actual damages were only about $10.8 million. That level of damages would mean CCC/CNA (and Starr) would owe nothing, instead of the $10 million layers Sinclair claims each insurer should pay pursuant to the policy.
The filings also foreshadow a potential future area of dispute. Sinclair says its losses from the hack are continuing, but CCC/CNA asserts such continuing expenses are not covered under the primary policy, issued by Axis Insurance.
Other Cyber Insurance Lawsuit News: Shareholder Lawsuit on Way for Sinclair Broadcast Group After Ransomware Attack? Significant Losses Expected from Hack Even After Cyber Insurance Reimbursements(Opens in a new browser tab).