T-Mobile Data Breach Win Paves Path for Cyber Insurance Disputes

T-Mobile US Inc.’s recent cyber insurance victory in Washington state court helps clear the way for organizations to use third-party data breach settlement payments to satisfy skyrocketing cyber insurance deductibles.

The Nov. 28 Washington appeals court ruling held that the telecom giant satisfied a $10 million deductible under a cyber policy with a Zurich American Insurance unit with funds it received from a vendor involved in a 2015 data 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. ...