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Homesite seeks to dodge United Airlines’ CrowdStrike outage claim - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Homesite seeks to dodge United Airlines’ CrowdStrike outage claim by Richard Sine Claims Disputes , Cyber Risks Jul 22, 2026 A Boston-based excess cyber liability insurer told a federal judge Monday that it owes United Airlines nothing for losses stemming from the 2024 CrowdStrike global computer outage. The case, Homesite Insurance Co. v. United Airlines Holdings Inc. , centers on an excess cyber policy the American Family Insurance unit sold to United that sits above a primary policy issued by Lexington Insurance Co., an American International Group excess and surplus lines unit. Homesite’s $5 million layer follows the terms of Lexington’s underlying policy, which carries a $15 million limit and United’s $50 million retention. United canceled flights and was unable to process payments for three days after a faulty software update from CrowdStrike was pushed to the airline’s computer systems, according to the complaint, filed in the U.S. District Court for the Northern District of Illinois in Chicago. United submitted its claim for lost business income in June 2025. It sought coverage for customer claim payments, including electronic travel certificates, frequent-flyer miles and cash payments, that it described as “gestures of goodwill” to inconvenienced customers, the complaint said. Homesite argues that these payments don’t qualify as covered passenger compensation because United “has not identified any specific ‘law or regulation’ that ‘required’ United to issue” them. United also submitted what the complaint calls “downstream revenue losses” from later flights that operated on schedule after systems were restored. Homesite said United used a flight-cancellation valuation method that does not apply to flights that ultimately operated as scheduled. Homesite also alleges United already recovered money from third parties for the same losses now being claimed and is improperly trying to use those recoveries to satisfy its $50 million retention rather than offsetting the claim itself. The policy states that the retention “must be borne by the Insureds and remain uninsured.” The July 2024 outage crashed more than 8 million computers worldwide and affected everything from airlines to banks, broadcasters, hospitals and retailers. It also spurred an avalanche of litigation: a consumers’ class action against CrowdStrike is pending in federal appeals court, while a suit between Delta Airlines and CrowdStrike is pending in state court. 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