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In a first-of-its-kind finding, the U.S. District Court for the District of Maryland has ruled that lost data and the compromised operability of a computer system resulting from a cyberattack, both qualify as “direct physical loss” under a businessowners policy. The case is National Ink & Stitch, LLC v. State Auto Property & Casualty Insurance Co. No. SAG-18-2138, 2020 U.S. Dist. LEXIS 11411 (D. Md. Jan. 23, 2020)

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