War Exclusion Without Mention of Cyber Attack Does Not Apply To Malware Attack In Policies Worth $1.6 Billion

Merck & Co. suffered $1.4 billion in losses due to a cyber attack known as NotPetya in spring 2017. It sought coverage from its insurance policy which denied the claim under a war exclusion. The Superior Court of New Jersey found the exclusion did not apply because a cyber-attack is not traditional war; so, losses from the same are covered. Cyber-attacks have become more prevalent, however, the insurance company did nothing to change its language in the exclusion to address those attacks. Read more about the case here.

If you have questions about whether your business insurance policy should cover a claim, Webb, Sanders & Williams has experience reviewing these policies. Contact our attorneys for a consultation.