The Court of Appeal for Ontario ruled that Panasonic Canada’s ransomware-related insurance claim is subject to a $3 million USD retention under XL Specialty’s Endorsement #023, not the $1.5 million USD retention under the base policy. Because Panasonic’s loss was valued at about $2 million USD, the court held the claim was wholly self-insured and dismissed Panasonic’s application. #PanasonicCanada #XLSpecialty #Endorsement023
Keypoints
- The Ontario Court of Appeal held that a $3 million USD retention applies to Panasonic’s ransomware claim.
- Panasonic’s policy included a $1.5 million USD retention in the base coverage and a $3 million USD retention in Endorsement #023.
- Attackers entered Panasonic’s network after an employee opened a malicious file in February 2022.
- Panasonic did not pay the ransom or negotiate with the attackers and instead sought coverage for response costs and business interruption.
- The court found the claim fell below the $3 million USD retention, making the loss wholly self-insured and awarding costs to XL Specialty.