As previously posted on our Hunton Insurance Recovery blog, a Maryland federal court awarded summary judgment to policyholder National Ink in National Ink and Stitch, LLC v. State Auto Property and Casualty Insurance Company, finding coverage for a cyber attack under a non-cyber insurance policy after the insured’s server and networked computer system were damaged as a result of a ransomware attack.
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On June 26, 2017, Airway Oxygen reported that it was the subject of a ransomware attack affecting 500,000 patients’ protected health information. The attack is the second largest health data breach recorded by the Office for Civil Rights this year, and the largest ransomware incident recorded by OCR since it began tracking incidents in 2009.
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On May 12, 2017, a massive ransomware attack, known as “WannaCry,” began affecting tens of thousands of computer systems in over 100 countries. These types of incidents can have significant legal implications for affected entities and industries for whom data access and continuity is critical. As affected entities work to understand and respond to the threat of ransomware, we address some of the key legal considerations.
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