Lab Seeks Coverage For Dispute Over Software Failure

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By Jennifer Mandato (April 6, 2022, 8:24 PM EDT) — A medical testing lab is taking its insurer to court for coverage of millions of dollars in lost business income after the lab’s software provider allegedly installed a “kill switch” that blocked access to patient records and demanded multiple extortion payments in order to return the stolen materials.

Genesis Diagnostics, owned by Abira Medical Laboratories, told a Pennsylvania district court on March 31 that its insurer, Transportation Insurance Company Inc., failed to investigate the claims and denied coverage under its policy for business income loss.

The lab sought coverage following a series of disputes between Genesis and its software provider, Comtron,…

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