Policyholder Plot Twist: Cyber Insurer Sues Policyholder’s Cyber Pros

Ace American Insurance Company filed a subrogation action against its insured’s cybersecurity and technology vendors, Congruity 360 and Trustwave Holdings, seeking to recover $500,000 in damages it paid to its insured, CoWorx, under the cyber policy. The insurer alleges that the incident arose from the negligence of Congruity 360 and Trustwave and also asserts breach of contract against both defendants.

The complaint claims that Congruity 360’s contract with CoWorx required multifactor authentication and secure network servers, and that these measures were not properly implemented, leading to ransomware installation. The claims against Trustwave are described as similar, with Trustwave alleged to have failed to notify the appropriate parties of the cyber incident, preventing proactive action and significantly increasing CoWorx’s damages. The piece was written by Veronica P.

Adams and Andrea DeField of Hunton Andrews Kurth, and according to Hunton Insurance Recovery Blog, the case is Ace American Insurance Company v. Congruity 360, Trustwave Holdings, Case No. 2:25-cv-15657 (D.N.J. Sep. 15, 2025). Read more at the Hunton Insurance Recovery Blog, via The National Law Review.