Insurance Journal reports:
Merck & Co. Inc. has reportedly reached a deal with insurers over a closely-watched coverage dispute related to a massive cyberattack in 2017.
The New Jersey Supreme Court in July 2023 agreed to hear the case after a state appeals court ruled months prior against eight insurers, finding that a hostile/warlike action exclusion in an all risks property insurance policy did not apply to a Russian-linked cyberattack known as “NotPetya” on the pharmaceutical firm.
More than 30 insurers were involved in the case at the start, but many have since resolved their claims with Merck. Eight insurers that remained in the case included Ace American, Allianz, Liberty Mutual, QBE, XL and Lloyd’s syndicates. Merck’s property insurance program included the “all risks” property policies in a three-layer structure, with $1.75 billion in total limits above a $150 million deductible. The remaining eight insurers’ policies insured percentages of coverage in one, two or all three of the layers. In total, they disputed about $700 million in coverage or just under 40% of Merck’s total coverage for the policy period.
Read more at Insurance Journal. The case is Merck Co., Inc. v. ACE Am. Ins. Co., N.J., No. A-62/63-22, case settled 1/3/24.