NotPetya victim sues its insurance company
Zurich Insurance has cited a "nation-state action" exclusion


A US food distributor that was hit by the NotPetya cyber attack is taking legal action against its insurance company for refusing to pay out on a $100m claim for damages caused by the hack.
Mondelez, which owns popular brands Oreo and Cadbury, was hit by NotPetya twice in 2017, suffering significant damage to its IT infrastructure including hardware.
According to court papers filed in Illinois, seen by the Financial Times, 1,700 of Mondelez servers and 24,000 of its laptops were rendered "permanently dysfunctional".
NotPetya was first discovered in June 2017 and, unlike most ransomware, it wasn't designed to encrypt files for extortion. Indeed, its simple goal was to cause as much damage as possible and spread within an infected network, permanently scrambling filesystems.
Both the US and UK governments have attributed NotPetya to Russian hackers attacking the Ukrainian government - claims that have been denied by the Kremlin.
Mondelez originally made claims for the cost of these damages on its property insurance policy, taken out with Zurich. The policy suggested it was covered for physical loss or damage to electronic data, software and physical damage caused by the malicious code or instruction.
The documents claim that Zurich initially promised to pay a $10 million interim payment but later refused, citing an exclusion in the policy for "a hostile or warlike action" by a nation state or people acting on its behalf.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
IT Pro has approached Zurich for comment but had not received a response at the time of publication.
Igor Baikalov, chief scientist at Securonix, believes that there's another reason to not pay out.
"Instead of a war exclusion clause, Zurich should have invoked a gross negligence clause, which is much easier to prove in this case than attribution to a nation-state, particularly considering Mondelez was hit twice by the same ransomware," he said.
"The "fool me once" proverb is fully applicable here: while many companies fall victims to ransomware, one of the first steps to recovery is to make sure it doesn't happen again."
Bobby Hellard is ITPro's Reviews Editor and has worked on CloudPro and ChannelPro since 2018. In his time at ITPro, Bobby has covered stories for all the major technology companies, such as Apple, Microsoft, Amazon and Facebook, and regularly attends industry-leading events such as AWS Re:Invent and Google Cloud Next.
Bobby mainly covers hardware reviews, but you will also recognize him as the face of many of our video reviews of laptops and smartphones.
-
‘I take pleasure in thinking I can rid society of at least some of them’: A cyber vigilante is dumping information on notorious ransomware criminals – and security experts say police will be keeping close tabs
News An anonymous whistleblower has released large amounts of data allegedly linked to the ransomware gangs
-
It's been a bad week for ransomware operators
News A host of ransomware strains have been neutralized, servers seized, and key players indicted
-
Everything we know about the Peter Green Chilled cyber attack
News A ransomware attack on the chilled food distributor highlights the supply chain risks within the retail sector
-
Scattered Spider: Who are the alleged hackers behind the M&S cyber attack?
News The Scattered Spider group has been highly active in recent years
-
Ransomware attacks are rising — but quiet payouts could mean there's more than actually reported
News Ransomware attacks continue to climb, but they may be even higher than official figures show as companies choose to quietly pay to make such incidents go away.
-
Cleo attack victim list grows as Hertz confirms customer data stolen – and security experts say it won't be the last
News Hertz has confirmed it suffered a data breach as a result of the Cleo zero-day vulnerability in late 2024, with the car rental giant warning that customer data was stolen.
-
‘Phishing kits are a force multiplier': Cheap cyber crime kits can be bought on the dark web for less than $25 – and experts warn it’s lowering the barrier of entry for amateur hackers
News Research from NordVPN shows phishing kits are now widely available on the dark web and via messaging apps like Telegram, and are often selling for less than $25.
-
Healthcare systems are rife with exploits — and ransomware gangs have noticed
News Nearly nine-in-ten healthcare organizations have medical devices that are vulnerable to exploits, and ransomware groups are taking notice.