ACE American Insurance Co. is suing to recover $500,000 it paid in ransomware damages for a staffing company, claiming cloud computing and cybersecurity firms contracted by its policyholder should instead be held responsible due to their alleged negligence.
The insurer maintains the two technology firms are responsible for certain failures that made it possible for the ransomware attack to occur and for mistakes made after it happened that increased the damage.
ACE, a Chubb subsidiary, provided cyber insurance to New Jersey-based CoWorx Staffing Services for its computer network and data in 2024 when CoWorx was