Panasonic Canada Inc. brought an application for a declaration that its insurance claim with XL Specialty Insurance Company was subject to a $1.5 million USD retention and sought coverage for replacement laptops purchased as reasonable mitigation following a cyber-attack.
XL contended that a $3 million USD retention applied because the claim involved a "ransomware event" under Endorsement 23 of the policy.
The court found that Panasonic's claim attracted the lower $1.5 million USD retention, that the laptop purchases were reasonable and necessary mitigation expenses, and that the property damage exclusion did not apply.
The court granted Panasonic's application, save for six laptops that were not shown to be necessary.
