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Homesite seeks court ruling that it owes United nothing for CrowdStrike outage
Homesite argues United is trying to recover twice, including by offsetting third-party outage recoveries against its own retention rather than subtracting them from the insurer claim.
A cyber insurer is asking a US judge to declare it owes nothing to United Airlines for business interruption losses tied to the July 2024 CrowdStrike outage, according to a complaint filed July 20, 2026, in the Northern District of Illinois.
Homesite Insurance Company, which provides excess coverage in United’s cyber program, said the policy has a $5 million limit and covers a 50% share of a $10 million layer above $45 million, sitting above a primary policy from Lexington Insurance Company with a $15 million limit and a $50 million retention, which Homesite said United must absorb first.
The filing says a faulty CrowdStrike Falcon update took down United’s computer systems around July 19, 2024, leading to several days of disruption, including cancelled flights and an inability to process payments at airports, with United fully back online by the morning of July 22, 2024.
Homesite also disputed two loss categories, arguing United’s customer claim payments include items Homesite says were issued without the insurers’ prior written consent, and that United’s downstream revenue loss calculations improperly claimed later flight segments that had already run once systems recovered, the complaint adds.
In addition, Homesite said the core issue is that United is attempting a double recovery, alleging United already recovered from third parties and then tried to count those recoveries against its $50 million retention instead of reducing the claim, citing policy language that no covered loss is payable to the extent the insured collected from third parties.