Article ID: f655e7abcb0f1a710de3aeeea7432de3e0ba3e6d2a1e52e9ad80363aeb67a1e1
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URL: https://www.businessinsurance.com/ransomware-sublimit-doesnt-apply-to-cyber-claim-court/
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Ransomware sublimit doesn’t apply to cyber claim: Court - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Ransomware sublimit doesn’t apply to cyber claim: Court by Gavin Souter Claims Disputes , Cyber Risks , Emerging Risks , Technology Feb 25, 2026 A Munich Re insurance unit cannot cap coverage at $250,000 for a ransomware attack suffered by CiCi Enterprises because the policy’s confusing language failed to clearly limit the company’s cyber extortion coverage, a federal court in Texas ruled. In CiCi Enterprises LP v. HSB Specialty Insurance Co. , a U.S. District Court in Dallas ruled Monday that the insurer’s ransomware sublimit endorsement did not apply to the restaurant company’s claim. CiCi said it incurred losses of more than $1.2 million after a May 2022 malware attack in which hackers encrypted its systems and demanded a ransom. It submitted a claim under its HSB cyber policy, which was handled through managing general agent At-Bay Insurance Services. HSB argued that although the policy had an overall limit of $3 million, a ransomware endorsement capped all related losses at $250,000. The endorsement, though, failed to clearly state how the ransomware sublimit applied or that it modified the cyber extortion coverage section of the policy, the court ruled. The endorsement stated that the cap applied only to “coverage afforded under this endorsement,” but did not specify that cyber extortion coverage was restricted, it said. “If HSB wanted the $250,000 sub-limit to apply across the board, regardless of the Insuring Agreement, then it was incumbent upon HSB to expressly and clearly state that. Having not done so, it cannot now complain,” the ruling states. Under Texas law, unclear limitations are interpreted in favor of policyholders, it said, allowing the case to move forward. An HSB spokesman said the company does not comment on litigation. 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