Law Firm Sues Insurer Over Ransomware Coverage

A ransomware attack locked down a Rhode Island firm’s computer files for three months. The Moses Afonso Ryan firm, Providence, says it paid a $25,000 ransom. That’s far less than its usual $700,000-plus billings during the time period, but the insurer will only pay the cost of the ransom. Although the firm made contact with the perpetrators almost immediately, problems making the payoff in Bitcoins kept the computers locked. During that time lawyers and staffers “were rendered essentially unproductive,” according to the suit. In its response, the insurer denies an unjustified refusal to provide coverage under the business owner’s policy. The policy form “speaks for itself,” the answer says. The suit has been removed to federal court.