Why Didn’t the Chicken Cross the Road?
Because it was stuck litigating whether the crosswalk was closed on January 1.
The punchline’s cute, but the lawsuit is real—and the stakes are no joke.
In December 2024, Harrison Poultry Inc. suffered a data breach. They did the right thing: notified their cyber insurer and began the formal victim notification process. But by April 2025, the lawsuits started rolling in—state and federal class actions. Then came the real twist: their insurer denied coverage, arguing the claims were filed after the policy expired.
Harrison hit back with a lawsuit of its own. Their argument? They warned the insurer in December that litigation was likely. That heads-up, they say, should count as a “claim made” under the policy’s language.
So now the company finds itself in a two-front war: fighting plaintiffs in court while also suing the insurer who was supposed to fund their defense.
Why This Should Scare Every Business (and Every MSP)
This isn’t just a poultry problem. It’s a policy problem. A timing problem. And most importantly—a documentation problem.
Coverage under most cyber insurance policies hinges on one brutal technicality: when a claim is considered “made.” If your notice isn’t precise enough—or fast enough—you’re out of luck, out of coverage, and out of pocket.
For Harrison, that might mean eating every cent of legal fees and settlements. For your clients, it means a single missed notice could become a multimillion-dollar disaster.
And for you—the MSP—it means you could be the next scapegoat if you didn’t advise your client properly, or worse, if you can’t prove you did.
The Real Problem Isn’t Security. It’s Evidence.
When breaches happen, blame isn’t assigned based on reality. It’s assigned based on receipts. And unless your incident response plan includes “notify cyber insurer with potential claim language” as a documented, timestamped action—your client could lose coverage, and you could end up on the wrong end of a subpoena.
What to Do Before Your Clients Are the Next Clay Pigeon
- Hardwire Legal Timelines Into IR Workflows
Claims-made policies demand fast action. Don’t wait for a summons. If there’s credible risk of litigation, notify now—formally, with evidence. - Document Everything—or Prepare for Court
This is your legal armor. Contracts, change approvals, SOWs, policy recommendations, decline decisions—all of it must be archived and audit-ready. Without it, you’re not defending your clients. You’re defending yourself. - Translate Insurance Language Into SOPs
What counts as a claim? How do you notify? Who do you notify? Map the exact policy language into your IR playbook and rehearse it. - Coach Leadership on the Clock
C-level hesitation kills coverage. One delayed notice can invalidate a million-dollar policy. If they “wait and see,” they may never see the payout. - Plan for Two-Front War
When coverage is disputed, clients must defend themselves and litigate with their insurer. You must be ready to support both battles—strategically, operationally, and with bulletproof records.
Where This Goes Next
Expect a ruling on whether Harrison’s December notice triggers coverage. If the court agrees, insurers will have to pay. If not, the company foots every bill—legal defense, settlements, regulatory fines.
Meanwhile, the state-court class actions keep marching forward. Harrison must fight on, paying legal fees while waiting to see if their own insurance will cover a dime.
Your Move: Get Insurance-Ready Now
This is exactly the kind of legal limbo that bankrupts businesses—and buries MSPs who can’t prove what they did and when.
Book a 60-Minute Cyber Liability Readiness Session with Galactic.
We’ll align your IR workflows with your client’s policy language, activate our Cyber Liability Defense system, and ensure every key decision—risk acceptance, coverage notification, forensic readiness—is documented and defensible.
