Chubb Unit Sues Data, Cyber Firms Over Ransomware Costs (1)

A Chubb Ltd. insurance unit is suing data management and cybersecurity companies, alleging they failed to prevent or mitigate a ransomware attack against policyholder CoWorx Staffing Services.

Ace American Insurance Co. paid more than $500,000 responding to the 2024 ransomware attack under its cyber policy, the insurer said in a complaint Monday in the US District Court for the District of New Jersey.

Staffing company CoWorx had contracted with Congruity 360 LLC to provide virtual machines using Microsoft Windows to run CoWorx’s web applications. But Congruity never established multi-factor authentication to log into the network, despite a clear contractual requirement ...