An appeals court found T-Mobile can cover its Zurich deductible with funds it recovered from a vendor involved in the breach. “The court rejected Zurich’s argument that a policyholder can’t use a third-party payment as a deductible and found that the insurer must cover T-Mobile’s losses stemming from the breach.
The decision will add firepower to companies’ insurance negotiations at a time when most cyber attacks involve third-party vendors and businesses face the prospect of being denied coverage because of high deductibles, insurance brokers and attorneys say. Policyholders are getting more aggressive about seeking recoveries from vendors as more cyber attacks target third-party weakness and deductibles jump, they say.”
Source: T-Mobile Data Breach Win Paves Path for Cyber Insurance Disputes