A practice is suing its insurance broker for $1 million-plus, alleging the firm allowed its cyber liability insurance to lapse around the same day that it suffered a ransomware attack.
Raleigh Radiology claims it completed the necessary forms and submitted them to Arthur J. Gallagher & Co. on time via email to renew its policies. But the global insurance brokerage allegedly never responded to its messages and let its policies lapse, according to an amended complaint filed on Thursday, May 4.
The $5 million-plus cyber policy expired at 12:01 a.m. on Feb. 15, 2022, the North Carolina practice noted. But Raleigh Radiology suffered a ransomware attack sometime on the 14th, with leaders shocked to find in the following days the they had no insurance when trying to tap the policy.
“Rather than having coverage under the insurance that AJG represented that it would procure for Raleigh Radiology, Raleigh Radiology was left almost completely on its own to respond to the cyber incident,” attorneys wrote in the complaint, filed in a North Carolina district court.
The unknown and unauthorized threat infiltrated the practice’s systems around Feb. 14, 2022, and between then and…
