Del. Justices Clear Key Hurdle For Cyber Incident Recovery

Rukesh Korde’s commentary was included in a Law360 article examining a Delaware Supreme Court ruling that allows insurers to pursue aggregated subrogation claims to recover policyholders’ losses stemming from a cyber incident. The decision cleared a procedural hurdle for insurers seeking collective recovery following a ransomware attack affecting multiple policyholders.

Rukesh noted that policyholders are often not made whole through insurance payouts alone and explained that subrogation actions may provide a pathway for recovery where insurers have greater resources to pursue responsible parties. He added that policy language or state law typically governs how proceeds from subrogation suits are divided between insurers and policyholders.