"Last month, Ace American Insurance Company filed a subrogation action against its insured's cybersecurity and technology vendors, alleging missteps by the technology companies. See Ace American Insurance Company v. Congruity 360, Trustwave Holdings, Case No. 2:25-cv-15657 (D.N.J. Sep. 15, 2025). Ace seeks to recover the $500,000 in damages it paid to its insured, CoWorx, under the cybersecurity policy issued by Ace. Ace alleges that its insured's cyber incident occurred as a result of Congruity 360 and Trustwave's negligence."
"The complaint details several alleged bases for Ace's subrogation action against the technology companies contracted by its insured. Against Congruity 360, Ace claims that the contract between CoWorx and Congruity 360 required Congruity 360 to set up multifactor authentication and secure network servers for CoWorx. Ace further alleges that Congruity 360 failed to do so, leading to installation of ransomware. The claims against Trustwave are similar. Ace alleges that Trustwave failed to properly notify the appropriate parties of the cyber incident, preventing CoWorx from being able to take relevant proactive action and significantly increasing CoWorx's damages from the incident."
Ace American filed a subrogation action against CoWorx's cybersecurity and technology vendors, Congruity 360 and Trustwave, seeking recovery of $500,000 paid under its cyber policy. Ace contends that Congruity 360 failed to implement contractually required multifactor authentication and secure network servers, which allegedly enabled ransomware installation. Ace contends that Trustwave failed to properly notify appropriate parties of the cyber incident, which allegedly prevented timely proactive measures and materially increased CoWorx's damages. Ace brings claims of negligence and breach of contract against both vendors. The case is styled Ace American Insurance Company v. Congruity 360, Trustwave Holdings (D.N.J. Sept. 15, 2025).
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