Engineers want answers like “yes,” “no,” or probability = 0.73.
Lawyers keep saying, “It depends.”

Annoying? Absolutely. But it’s also the only honest answer in a system built on interpretation—not equations. And if you think that uncertainty can’t take down your business, think again.

Quick chicken aside: if the law were a farm, truth isn’t measured with a ruler—it’s gathered like eggs: one at a time, labeled, and argued over.

Let’s walk through a case unfolding right now—and why it matters for every MSP and every business that thinks cyber insurance is their safety net.

The Situation: A Breach, a Policy Deadline, and Two Lawsuits

In December 2024, Harrison Poultry Inc. suffered a data breach. They did what most incident response plans advise: notify their cyber insurance carrier and begin the formal process of alerting victims.

Then came the problem.

In April 2025—after the insurance policy expired—Harrison was sued in both state and federal court. The lawsuits? Class-action claims tied directly to the breach.

At first, the carrier had their back. Then it flipped. The insurer argued the claims were filed after the policy expired, so no coverage.

Harrison fired back with a lawsuit of its own, arguing that their December 2024 “notice of a likely claim” should trigger coverage—even though the actual lawsuits didn’t arrive until months later.

That’s where “it depends” takes over.

Why the Answer Isn’t Simple (and Why That Should Terrify You)

You’d think this would be easy: notify the insurer during the policy period, get covered. But cyber liability policies aren’t that forgiving. They’re “claims-made” policies—coverage hinges on when a claim is made and when it’s reported.

And what counts as a “claim”? That depends entirely on how your policy defines it—and how clearly you document the facts.

This is where legal systems and logging systems collide. You can’t just show activity. You have to argue intent, interpretation, timing, and language—under oath.

Meanwhile, two different legal battles now run side by side:

  • Harrison vs. Insurer: Did the December notice count? Should the lawsuits be covered?
  • Class Actions vs. Harrison: Are they liable for data loss, privacy violations, or damages?

Here’s the Problem: Legal Costs Stack Even If You Win

Class-action lawyers work on contingency. They get paid if they settle. So if insurance is likely to pay out, they’ll push forward. If coverage fails? Some suits stall out. Others trim down. But in either case, Harrison has to pay their own legal defense fees in the meantime—on both fronts.

The longer the insurer delays or denies, the more financial strain Harrison takes on. That’s the trap. And it doesn’t take a big business to fall into it. All it takes is one vague policy and a late notification.

Your Move: Build Your Defense Before the Lawsuit Starts

Every breach is a race between remediation and litigation. And the only way to win that race is to be ready before the starting gun fires.

Here’s how:

  • Know your policy cold. Claims-made coverage hinges on definitions. Map what counts as a claim, what triggers notice, and what documentation is required.
  • Hardwire notifications into your IR plan. Don’t wait for a court summons. If legal risk exists, notify the insurer—formally, with supporting evidence.
  • Capture and preserve key artifacts. Logs, risk acceptance documents, policy changes, security recommendations, and client decisions—these form your legal defense.
  • Coach leadership early. A CEO who delays notification to “see how things shake out” can sink the policy. Minutes matter. So does wording.

Lock It In Before You’re the One Paying the Lawyers

Book a 60-Minute Cyber Liability Readiness Session with Galactic.
We’ll align your IR process to your actual insurance contract, activate our Cyber Liability Defense system, and make sure every critical decision is logged, time-stamped, and legally defensible.

Because “it depends” isn’t good enough when your business is on the line.