In the three-year court proceedings between the greater Dayton medical billing software maker EMOI and its insurance service provider Lansing, Michigan-based Owners Insurance Company, the latter asserted that the insurance contract unambiguously stated only “direct physical loss” or “direct physical damage” to media would be covered under the insurance policy.The court in its final ruling gave the rationale that a computer might have physical electronic components that are “tangible” in nature but the information stored there has no “physical presence”; thus a ransomware attack on the company software has no coverage under the company’s insurance policy.A district judge had dismissed EMOI’s case against Owners, which the developer brought forth just months after the attack.Owners insurance in its memorandum in support of jurisdiction wrote:“… Everything from personal phones and computers to cars, voting machines, and pipeline control systems have been “hacked” or “ransomed”.The reason that it was developed is that traditional commercial or business property insurance does not contemplate such coverage…Wish as it might that it had purchased a ‘cyber’ policy that might have provided coverage for this situation, EMOI did not….”Similar claims have been settled in the favor of insurance companies, setting a trend of exclusion from the private sector and liability insurance policies for cyber attack incidents."