The AustralianFederal Court handed down a judgement last week that an Insurer is not liable for ransomware clean-up costs of the victim.
The victim - Inchcape Australia is an automotive distributor and services firm. It was infected by ransomware at the end of 2020.
Justice Jayne Jagot wrote in her judgment that such costs as decisions taken by the victim, rather than as costs directly incurred from the attack and therefore not claimable under the insurance policy it held.
But the way “direct” - claimable - and “indirect” - unclaimable - costs incurred by an attack victim were described in the judgment could worry some organisations that think they have adequate cover for cyber incidents.
Gilbert + Tobin Partner Simon Burns saw potential for this part of the judgment to have a broader impact on the interpretation of claimable costs under cyber insurance policies. Mr Burns told iTnews - “The big lesson is if you want to be covered for those actions you should be really clear in the insurance cover and the policy that they’re in there.”
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