United Airlines and its insurer filed dueling lawsuits last week over tens of millions of losses stemming from the disruptive CrowdStrike outage, setting up a high-profile conflict over key issues in cyberinsurance disputes.

Homesite Insurance Co. and United pointed fingers in separate complaints filed July 21 in Illinois federal court over a number of cyber policy hot spots — whether the airline had satisfied its retention; the necessity of the airline's customer payouts; and how those figures were calculated.

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Luma Al-Shibib, co-chair of Anderson Kill's cyberinsurance recovery group, said United's argument that Homesite was the only one of seven insurers that declined to pay out their full limits, and was thus an outlier on the interpretation of the policy, put the excess insurer in a difficult position.

"I think that's going to give any court hearing this case some pause, and it's going to be a significant question: Why is Homesite the only one that has decided that these costs are not covered, have not been substantiated and somehow excluded?" said Al-Shibib.
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