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In this Insurance Law Update, Jenner & Block Partner Jan A. Larson and Associate Catherine L. Doyle examine the potential impact of court action on ransomware coverage. The authors explore the pending district court action of Moses Afonso Ryan Ltd. v. Sentinel Insurance Company Ltd. They explain that the case wrestles with the classification of, and coverage for, business interruption and lost income suffered by a law firm in the wake of a ransomware attack. “The case offers a preview into whether courts will construe broad, general business insurance provisions to protect insureds against significant lost-business income caused by ransomware attacks, or whether insurers will enjoy wide latitude to hide behind more stringent limitations of liability found in narrower provisions related to data and software damage,” they observe.
Law360 republished the Update.