ON 28 February 2026, DataBreaches[.]Net reports that the Northern District of Texas handed a win to cyber policyholders in CiCi Enterprises, LP v. HSB Specialty Insurance Company, finding that a Ransomware Event Sublimit Endorsement did not cap CiCi’s recovery to $250,000 because the endorsement was not drafted with sufficient clarity. The CiCi incident occurred in May 2022 when a threat actor encrypted CiCi’s computer systems and threatened to release exfiltrated data unless a ransom was paid.
CiCi notified its insurer, HSB, engaged appropriate vendors, and ultimately incurred around $1.2 million in costs, including a $400,000 ransom payment. The court concluded that HSB failed to draft the endorsement to clearly limit the coverage as intended. Read more at The National Law Review, according to The National Law Review.