Hunton Insurance Recovery Blog

In the rarely litigated space of cyber insurance, the Northern District of Texas issued a win for cyber policyholders this week, offering a clear reminder to insurers that if they want to restrict coverage, they must draft the policy to clearly do so.

If recent years have taught insurance practitioners anything, it is that the most consequential coverage disputes rarely turn on novelty alone. In 2025, courts continued to resolve high‑stakes insurance disputes by returning to first principles—examining when claims are related, how losses and occurrences are defined and aggregated, and how policy language allocates risk across time and conduct. D&O coverage and other core insurance law issues again occupied center stage, while decisions in property, cyber, and liability disputes reinforced a familiar theme: policy interpretation remains the decisive factor in determining whether coverage is available in an increasingly complex claims environment. As the decisions discussed below demonstrate, 2025 confirmed that even as risks evolve, coverage disputes remain grounded in careful, policy‑specific analysis.

On December 16, 2025, the Federal Trade Commission announced an enforcement action against Illusory Systems Inc., a Utah-based company doing business as Nomad, following a major data breach in which hackers stole $186 million from consumers.

On November 12, 2025, the UK government introduced the draft Cyber Security and Resilience (Network and Information Systems) Bill to the UK Parliament.