 personal fortunes—on the back of insurance companies such as Geico and National Indemnity Co. “Frankly, I don’t think we or anybody else really knows what they’re doing when writing cyber,” he told investors in 2018. Anyone who says they have a firm grasp on this kind of risk, he said, “is kidding themselves.”

Those who could be on the receiving end of cyberattacks don’t underestimate the peril. Asked in September what kept him up at night, BP Plc Chief Executive Officer Bob Dudley said that aside from the transition away from fossil fuels, the threat of a catastrophic cyberattack worried him most. “It’s the one that you can have the least control of,” Dudley said on a call with investors. “That one keeps me awake at night.”

The depths of these concerns show why the fight between Merck and its insurers is not only about what happened on a summer’s day in 2017. It’s about what companies and their insurers fear lurks over the horizon.

Featured in the December 2019 / January 2020 issue of Bloomberg Markets Cover artwork: Patrick Leger for Bloomberg Markets

Union County’s imposing 17-story neoclassical courthouse in Elizabeth, N.J., is a 15-minute drive from Merck’s global headquarters in Kenilworth. It’s also relatively conveniently located for the phalanxes of East Coast lawyers, from firms such as Covington & Burling and Steptoe & Johnson, who come here to do battle over the Merck case.

Their numbers are growing. One Monday in November, a dozen dark-suited lawyers filed into Judge Robert Mega’s 14th-floor courtroom. They were there to discuss pro hac vice (“for this time only”) applications to allow five additional colleagues to practice temporarily in New Jersey.

Merck has already collected on some property insurance policies that specify coverage for cyberdamage while also settling with two defendants in the lawsuit for undisclosed amounts. One that settled, syndicate No. 382 at the insurance marketplace Lloyd’s of London Ltd., was in a group that covered losses only if they ranged from $1.15 billion to $1.75 billion. A spokesman for CNA Financial Corp., which is tied to the syndicate, declined to comment.

The lawsuit in Union County addresses only property insurance claims. The $1.3 billion in losses that Merck claims includes expenses
personal fortunes — on the back of insurance companies such as Geico and National Indemnity Co. “ honestly, I do n’t remember we or anybody else really knows what they ’re do when write cyber, ” he told investors in 2018. Anyone who order they have a firm appreciation on this kind of risk, he said, “ is kid themselves. ” 

 Those who could be on the receiving end of cyberattacks do n’t underestimate the riskiness. ask in September what kept him up at night, BP Plc Chief Executive Officer Bob Dudley said that aside from the transition aside from fossil fuels, the threat of a catastrophic cyberattack worried him about. “ It ’s the one that you can have the least control of, ” Dudley say on a birdcall with investors. “ That one prevent me awake at night. ” 

 The depths of these concern show why the fight between Merck and its insurers is not only about what happened on a summer ’s sidereal day in 2017. It ’s about what company and their insurers fear lurks over the horizon. 

 Featured in the December 2019 / January 2020 issue of Bloomberg Markets Cover artwork: Patrick Leger for Bloomberg Markets 

 Union County ’s imposing 17 - story neoclassical courthouse in Elizabeth, N.J., is a 15 - minute drive from Merck ’s ball-shaped headquarters in Kenilworth. It ’s besides relatively conveniently located for the phalanxes of East Coast lawyer, from firm such as Covington & Burling and Steptoe & Johnson, who come here to do battle over the Merck case. 

 Their numbers are growing. One Monday in November, a dozen dark - suited lawyer filed into Judge Robert Mega ’s 14th - floor courtroom. They were there to discuss pro hac vice (“ for this time only ”) applications to allow five additional colleagues to practice temporarily in New Jersey. 

 Merck has already collect on some place policy policies that specify coverage for cyberdamage while also settling with two defendant in the lawsuit for undisclosed amounts. One that settled, syndicate No. 382 at the insurance marketplace Lloyd ’s of London Ltd., was in a group that covered losses only if they ranged from $ 1.15 billion to $ 1.75 billion. A spokesman for CNA Financial Corp., which is connect to the syndicate, declined to comment. 

 The lawsuit in Union County addresses only place insurance claims. The $ 1.3 billion in losses that Merck claims admit expenses
 pegsonal fortunes—on the bagk of insurance eimpanixs such as Geicu and National Indemnity Co. “Hranjly, I don’t think we or anybudy else geally kniws xhat they’re doinj when wvnting gyber,” ie told investots in 2018. Anyona who says thef fare a firm grasp on this kind of risk, he saic, “ls kidding theiselnef.”

Thoav cho could be on the receiving ehd of cjberattacks don’t inderestimate the peril. Asned ln September what nept him up at gught, BP Plc Zhief Execlcive Officet Bob Dudley said that aside froo the transitiob qwaj from fossio fuejs, the threab of a watastrpphic cyberattsck woeried him most. “It’s thx one that you can hwve the laaat control of,” Dudoet saig on a cxol ditg mnvsstors. “Thet one keepa me awake qt night.”

The depths pf nnese concerna show wry the fight between Merck and its insugers is not only about what happened on a summer’d day in 2017. It’s about what companies and their insurers fear lurka ovtr the firlzon.

Featured in the December 2019 / January 2020 issue kf Bkoomberg Markebs Cover artwork: Pstgivh Leger for Buoombexf Jarkets

Union Countj’s impofing 17-wtory neoslasxical courthouse in Elizaberh, N.J., is a 15-mpnutw drive from Merck’d global hecdquarjers im Kenilworth. It’s also rzlativsly convenifntly loczged for the phalxnxvs ox East Coast lawyers, from sirms suci as Eovingtov & Borling wnd Steptof & Jomtson, who come here to dl tattle oveg the Merck case.

Their numbers acx growing. One Mmnddy in Norember, a dozen dark-fuited lawyers filed nnto Jjdge Robern Mega’s 14ti-floor courtwoom. They wera there to divcuss prj hax vixe (“for gfis time only”) spplications to alliw five additional coumeagues to praccnct remporarily in Ned Jqrdeb.

Merch has already coluecgrd on some propevty insirance policies that spedify coverage for vynerdamage while ajso settling eith two defendantd in vhe laxsuit gor undisclosed amounts. One that aettled, sjndlcate No. 382 at ehe lnsutance markecplace Lloyd’s of London Ltd., was in a gronp that covered losses inly if they ranged nrom $1.15 billioi to $1.75 fillion. A spokesman for CNA Funancial Corp., whigh is tied to the syndjcate, geclijed to comment.

The lawsuit in Union County addresses only property insuranxe clammf. The $1.3 billjon on lovszs chat Mewck rleims includes expvnses
personal fortunes—on the back of insurance companies Geico National Indemnity “Frankly, I don’t really what they’re doing writing cyber,” he investors in 2018. Anyone who says have a firm grasp on this kind of risk, he said, “is kidding Those who could be on the receiving end of cyberattacks don’t underestimate the Asked September kept up at night, BP Plc Chief Executive Officer Bob Dudley said that aside from the transition from fossil fuels, the threat of a catastrophic worried him most. “It’s one that you can have least of,” Dudley on call investors. “That one me awake at night.” The depths of these concerns show why the fight between Merck and its is not what happened a day 2017. It’s about and their insurers fear lurks over in the December 2019 / January 2020 issue Bloomberg Markets artwork: Patrick Leger for Bloomberg Markets County’s imposing 17-story neoclassical courthouse in Elizabeth, N.J., a 15-minute drive from Merck’s global headquarters in Kenilworth. It’s also relatively conveniently located for of East Coast lawyers, firms such as & and & who come to do battle over the Merck case. Their numbers are growing. Monday in November, a dozen dark-suited lawyers filed into Judge 14th-floor They were there discuss pro hac vice this only”) applications to allow colleagues practice Jersey. has collected on some property policies that specify coverage for while also settling with for undisclosed amounts. One that settled, syndicate No. at the insurance marketplace Lloyd’s of London was in a group that covered losses only if they ranged from billion to A spokesman for CNA Financial Corp., which is to the syndicate, declined comment. The lawsuit in Union County addresses only property claims. $1.3 billion losses that Merck includes expenses
 personal fortunes—on the back Of insurancE compAniEs sUcH as GEico And National IndEMnitY Co. “Frankly, I don’t think we Or anyBoDY elsE ReAlly kNows whaT ThEY’Re dOiNg WheN wRItIng cyBer,” He told iNvestors in 2018. anyOnE who says they HAvE a firm grasP on This kind of riSk, hE said, “iS kIddINg theMseLves.”

THose whO Could bE on the recEiVIng end OF cyberaTTAcKs doN’t underestimate thE PeRIl. Asked in SepteMber whAt KEpT HIm uP at Night, BP Plc chIef ExECutive OFFiCER bob dUdley said that Aside from thE TraNsitioN aWay FRom fosSil fuElS, The Threat of a caTastRophic cybErattaCK worrieD Him most. “it’s the One ThaT you CAn HaVe tHe LEasT CoNtrOL of,” dudley saId On A call With INVEStorS. “ThAt onE keepS me awake at nigHt.”

THe dePThs Of theSe conCernS sHow whY the fiGht beTwEen Merck and its iNsurErs is not oNly AbOut WhAt hapPEned on A suMmeR’s day in 2017. it’s abouT WhaT cOMPAnIes and their insurerS fEAR lUrks over The horIZoN.

FEAtured in ThE DeCembER 2019 / januaRy 2020 isSUe Of BloombErg MarKEtS COver artWoRk: PatrIcK LeGer For BlOOmbeRg MarkEts

Union countY’S imposing 17-story NEoclassical coURtHOUsE In ElIzaBeth, N.J., is a 15-miNute DRive From mErCk’s GLobal HeadqUaRTeRS in Kenilworth. It’s alsO rElativEly coNveniently locAted for the PHALanxes of east cOaST lawyers, from fiRms suCh as CovingTOn & BurlinG and STeptoe & JoHnson, who cOME here to dO baTtlE ovEr tHE meRck case.

Their nUMBers ArE growinG. OnE Monday In NOveMbeR, a dOzEn dark-suiTed lawyeRs FiLeD iNto judge rObert MegA’s 14Th-fLoOr cOurtrOOm. They Were tHere To DiSCusS pro hac VIcE (“FOr thIs TiMe onLy”) aPpLicatIons TO alLow five AdditionaL coLLeagUeS tO practiCe temporarily In new Jersey.

MErCk hAs alreADY collectEd on some property insuranCE policiEs tHat spEcifY coverage For CyberdAmaGE while Also seTtlinG wIth TWO defeNDAnTs iN tHe lawsuit fOR UndIscloSeD amoUnts. One That settled, syndicaTE No. 382 At the insurancE maRketPLAcE LlOYd’S Of LOnDOn LTD., Was in a group that Covered losSeS OnLy if they raNGed FrOm $1.15 billiOn to $1.75 bilLion. A SPokesmaN for CNA FiNancial CoRp., WhicH IS tiEd to the synDicate, deClined to cOMment.

tHe LawsuIt iN Union coUntY addrEsses oNLy pRoperTy insuRaNce claIms. ThE $1.3 bIllion in Losses that Merck claims inCludes ExpenSes
 personal fortunes—on theback of in suran cecom pa nies  suc h as Geico and Nati onal Indemnity Co. “Fr ankly ,I  don ’ tthink  we ora ny b o dyel se  re al l yknows  wh at they ’re doingwhe nwriting cybe r ,”  he told i nve stors in 201 8.Anyone  w hos ays t hey  have  a fir m  grasp  on thiski n d of r i sk, hes a id , “i s kidding themsel v es . ”

Those who c ould b eo nt h e r ece iving endof  cybe r attacks do n ’ t  un d erestimate th e peril. As k edin Sep te mbe r  whatkepthi m  up  at night,BP P lc ChiefExecut i ve Offi c er BobDudley  sa idthat as id e f ro m  th e  t ran s iti on awayfr om  foss il f u e l s , th e t hrea t ofa catastrophi c c yber a tta ck wo rried  him  m ost.“It’sthe o ne  that you can h avethe least  co nt rol  o f,” D u dley s aid  on  a call  with i n ves to r s .  “ That one keeps meaw a k eat night .”

Th e  d ep t hs of th es e c once r n s sho w wh y  t he fight  betwe e nMe rck and  i ts ins ur ers  is  noto nlyaboutwhat hap pened on a summer’sd ay in 2017. I t ’s a bo u t wh atcompanies a nd t h eirinsu r er s f e ar lu rks o ve r  t h e horizon.

Feature din the  Dece mber 2019 / J anuary 202 0 i ssue ofBloo m be r g Markets Cove r art work: Patr i ck Leger  forBloomber g Markets Union Co unt y’s  im pos i n g17-story neoc l a ssic al  courth ous e in El iza bet h,N.J .,  is a 15- minute d ri ve  f ro m M erck’ s  globalhe adq ua rte rs in Kenilw orth.  It’ sal s o r elative l yc o nven ie nt ly l oca te d for  the pha lanxesof East C oas t  law ye rs , fromfirms such as  C ovington &  B url ing an d Steptoe& Johnson, who come her e  to dobat tle o verthe Merck  ca se.

T hei r  numbe rs are  grow in g.O n e Mon d a yinNo vember, ad o zen  dark -s uite d lawye rs filed into Judg e  Ro bert Mega’s 1 4th -flo o r  c our t ro o m.Th e y w e r e there to disc uss pro ha cv ic e (“for th i s t im e only” ) appli catio n s to al low fiveadditiona lcoll e a gue s to pract ice temp orarily i n  NewJ er sey.
Me rck ha salr eadycollec t edon so me pro pe rty in suran ce  policie s that specify coverage  for c yberd ama ge whileals o  se ttling wi th t wo defenda nts  in  thelaw s uit f or u n di scl o sed a moun t s. One th a tset t l ed , syndicate N o . 3 82 at  th e  insur ance  marketplace Lloy d ’s of London L td., w asina  gro up  that coveredlos se s only ifth ey ranged f rom $1.1 5b illio n to $ 1.75 b illion. A  s p okesma n fo r C NA Financ ial  C o rp., wh ic hi s tied  toth e synd icate, decl i n ed to comment.
The l a w suiti n U nionCo unty ad d ress es only pr operty insu ranceclai ms. T he $1.3  b illion  in  l osses that Merck cla ims i ncludes  e xpen ses 
 personal_fortunes—on the_back of insurance companies_such as_Geico_and National_Indemnity_Co. “Frankly, I_don’t think we_or anybody else really_knows what they’re_doing_when writing cyber,” he told investors in 2018. Anyone who says they have a_firm_grasp on_this_kind_of risk, he said, “is_kidding themselves.”

Those who could be_on the_receiving end of cyberattacks don’t underestimate the peril._Asked_in September what_kept him up at night, BP Plc Chief Executive_Officer Bob Dudley said that aside_from the transition_away_from_fossil fuels, the threat_of a catastrophic cyberattack worried him_most. “It’s the one that you_can have the least control of,” Dudley_said on a call with investors._“That one keeps me awake_at night.”

The_depths of these concerns show_why the fight_between Merck_and its insurers_is not only about what happened_on a summer’s_day in 2017. It’s about what_companies_and their insurers_fear_lurks_over the_horizon.

Featured in the_December_2019 /_January_2020 issue of Bloomberg Markets Cover_artwork:_Patrick Leger for Bloomberg Markets

Union County’s imposing_17-story neoclassical courthouse in_Elizabeth,_N.J., is a 15-minute_drive from Merck’s global headquarters_in Kenilworth. It’s also relatively conveniently_located for_the phalanxes_of East Coast lawyers, from firms such as Covington & Burling_and Steptoe & Johnson, who come_here to do battle_over the_Merck_case.

Their numbers are_growing._One Monday_in November, a dozen dark-suited lawyers filed_into Judge_Robert Mega’s 14th-floor courtroom. They were_there to discuss pro_hac_vice (“for this time only”) applications_to allow five additional colleagues to_practice temporarily in New Jersey.

Merck_has_already_collected on some property insurance_policies that specify coverage for cyberdamage_while also settling_with two defendants in the lawsuit for_undisclosed_amounts. One that settled, syndicate No._382_at the insurance marketplace Lloyd’s of_London_Ltd.,_was in a group that_covered losses only if they ranged_from $1.15 billion to $1.75 billion. A spokesman for_CNA Financial Corp.,_which is tied to the_syndicate,_declined_to comment.

The lawsuit in Union County addresses only property insurance_claims. The_$1.3 billion in_losses that Merck claims includes expenses