Switzerland’s insurance firm Zurich is the target of a lawsuit filed by a U.S. food-maker, which wants to force the Swiss company to pay for losses it incurred through a cyberattack.
In June 2017, a string of globally active businesses became the target of a cyberattack in the shape of the «Petya» malware. One of the victims was Mondelez, a U.S.-based snack producer that also owns Swiss chocolate brands Toblerone and Suchard.
Mondelez lost 1,700 servers and 24,000 laptops through the attack and demanded compensation from its insurance firm, Zurich Insurance Group. The Swiss company however refused to pay the $100 million claimed and also hasn’t paid the $10 million it originally offered as compensation.
Government-Sponsored Hostile Act
The reason for the refusal to pay: the insurance policy excluded compensation for damages incurred through hostile and warlike acts in peacetime, orchestrated by a government or sovereign power. The key point is that Zurich Insurance deems the «Petya» attack to be a hostile act orchestrated by Russia.
Mondelez has now filed a lawsuit claiming the $100 million, according to media reports. The company is eager to see if and how Zurich Insurance can prove that the attack indeed was a hostile act ordered by the Russian government.
Landmark Ruling
If Zurich Insurance wins the case however, all insurance takers will have to take another look at their policies covering cyberattacks.
