Security News > 2022 > January > Merck Awarded $1.4B Insurance Payout over NotPetya Attack

Unsealed court records show pharmaceutical giant Merck was awarded a $1.4 billion payout last month on its property insurance policy, for losses the company suffered because of the 2017 NotPetya cyberattacks.

Merck's $1.75 billion property insurance policy will have to cover the damage the NotPetya attacks did to the company's 40,000 computers, totaling more than $1.4 billion, according to the court filing.

Insurance companies are already tightening up policy language to stave off nation-state cybersecurity claims.

"In just four years since 2017, cyber insurance has progressed dramatically," Jack Kudale, CEO of Cowbell Cyber told Threatpost in reaction to the ruling.

"The growth of ransomware is pushing the financial boundaries of insurance companies, so they've been looking for escape hatches," Netenrich threat hunter John Bambenek told Threatpost by email.

"'Act of war' clauses are common in insurance contracts, but only in cybersecurity is there any real risk of that.

News URL

https://threatpost.com/merck-insurance-payout-notpetya-attack/177872/