What Merck’s Win Means for War Exclusions in Insurance Policies – Peter Halprin Interviewed by Information Security Media Group and Claims Journal

On May 1, 2023, a New Jersey intermediate appellate court upheld Merck & Co.’s trial court win and ruled that its insurers could not invoke a war exclusion to deny coverage for a 2017 cyberattack.

“The Court reiterated key insurance policy interpretation principles, including the importance of all risk coverage, the breadth of coverage provisions, and the narrow construction of exclusionary language,” Partner Peter Halprin told Claims Journal.

In an interview with Information Security Media Group, Halprin said, “The most immediate impact of the ruling will be on cases involving the same exclusionary language. However, the broader message is that insurers must clearly identify the risks that they wish to exclude if they do not want to cover those risks.”

View the Information Security Media Group article here.

View the Claims Journal article here.