Consortium of Leading Cyber Technology and Insurance Providers Announce the Launch of SafeHouseInitiative.org
January 17, 2023
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This is a companion blog to the “The SafeHouse” podcast dated August 21, 2025.
Listen to the original podcast here: https://safehouseinitiative.org/when-business-stops-bi-litigation-and-the-fight-for-recovery-with-jane-warring/
Business interruption (BI) coverage has become one of the most critical—and contested—areas of cyber insurance. In a recent episode of The Safe House Podcast, hosts Jeff Edwards and Tawana Johnson sat down with Jane Warring, Partner at Zel Law, to explore the realities of BI litigation, the challenges of quantifying loss, and what business leaders should know when the unthinkable happens.
Jane has been an insurance coverage litigator for nearly two decades, representing carriers across multiple lines. Her introduction to Cyber BI came in 2014:
“I got my first cyber claim arising out of a malware attack on a large casino in Las Vegas. It had a large BI component. Because of my experience doing business interruption claims in the property world, I was pulled into that case—and from there I just loved working in the cyber space.”
Unlike traditional property damage claims, Cyber BI is rarely about a building or system being completely destroyed. Instead, businesses often face short-term disruptions or partial outages—but those can still result in millions in lost revenue.
The fundamental challenge with BI claims, Jane explained, is estimating what a company would have earned if the incident had never occurred.
“You’re really saying: if this cyber incident had not occurred, what would this company have made during the period of restoration—and what did they actually make? The difference between those two numbers is their loss. But estimating that is an art, not a science.”
Forensic accountants play a key role, pulling together profit-and-loss statements, budgets, seasonal performance trends, and mitigation efforts. But even with strong documentation, disputes often arise over methodology.
When asked what small and mid-sized business owners should be prepared to provide, Jane was clear:
“The accountant is going to want to see your financial documentation and your operational documentation—income and loss statements, monthly and annual reports, even comparisons from past seasons. They also need to confirm causation: which applications were down, how long, and how did they actually impact your revenue?”
She noted that many Cyber BI claims fail because the supporting evidence isn’t fresh or detailed enough to prove that lost profits were directly tied to the incident.
According to Jane, Cyber BI claims stand apart in two major ways:
“In property, you might see a hotel destroyed by a hurricane and shut for a year. In cyber, you might see a car manufacturer disrupted for just two or three days—but still suffering multi-million-dollar losses.”
Because outages are often short, businesses may experience deferred sales rather than permanent losses. Loyal customers wait for operations to resume, though this depends heavily on the type of business.
Litigation in this space is still relatively rare, Jane noted, partly because cyber insurance is evolving and competitive:
“It’s a buyer market right now. More insurers are entering, competing on price, capacity, and policy wordings. Many offer added services like resilience assessments. It’s a great time for businesses to explore BI coverage.”
Most disputes are resolved pre-litigation, through negotiation and settlement, but Jane predicts that case law will eventually expand as larger claims test policy language.
Timing matters. Many businesses delay filing while focused on recovery, but Jane cautions against waiting too long:
“The sooner you get the claim in, the better—because memories are fresh and documents are accessible. Some policies even cover the cost of hiring forensic accountants to prepare your BI claim, which usually makes the process smoother.”
At the close of the interview, Jeff asked Jane what single action businesses could take to reduce their cyber risk. Her advice was straightforward:
“Get a good team. Whether internal or external, you need people to analyze your cyber risk—where your data is stored, which applications are critical, what workarounds exist—and then take that to a broker. A good broker will make sure you get the right cyber coverage.”
She emphasized that too many disputes arise when coverage doesn’t align with how a business actually operates.
As Jane concluded, Cyber BI litigation is still an emerging field—but it’s one that will only grow as businesses become ever more reliant on technology.
“Every business now is so integrated with technology that these impacts can create very large profit-loss claims. It’s a fascinating and evolving area of the insurance industry.”
For SMBs and enterprises alike, the lesson is clear: prepare now, document everything, and ensure your insurance strategy matches your operational reality.
For more information about the SafeHouse Initiative and how you can protect your organization, visit safehouseinitiative.org.
