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Ohio Supreme Court Says Ransomware Is Not Physical Damage

Ohio Supreme Court Says Ransomware Is Not Physical Damage

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Ransomware hacking isn’t tantamount to a physical attack, the Ohio Supreme Court ruled, meaning a software developer can’t use its property insurance to cover losses.

A unanimous ruling Tuesday from the court’s seven justices sided with Lansing, Michigan-based Owners Insurance Company against greater Dayton medical billing software maker EMOI.

Owners Insurance Company, a property and casualty subsidiary of the Auto-Owners Insurance Group, covered the latter for “direct physical loss” to digital media.

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