Richard Bortnick (Of Counsel-Philadelphia, PA) and Charina Michaud (Associate-Chicago, IL) coauthored “Legal Analysis: Insurer Subrogation Under Scrutiny,” appearing in the April 17, 2026, posting of Claims Journal. The article analyzes two recent decisions – Axis Insurance Co. v. Barracuda Networks, Inc. and Travelers Casualty and Surety Co. of America v. Blackbaud, Inc. – that examine the scope of insurers’ subrogation rights in the wake of data security breaches. Rick and Charina explain that while the First Circuit in Axis rejected subrogation claims against a downstream vendor for lack of contractual privity, the Delaware Supreme Court in Travelers allowed similar claims to proceed where a direct contractual relationship existed. Together, the decisions clarify that subrogation claims in the cybersecurity context hinge on the existence and proper pleading of contractual relationships between the insured and the alleged wrongdoer. “Absent a contractual relationship between the insured and the alleged subrogee, a claim for indemnity or subrogation is unlikely to survive – particularly in jurisdictions that follow the reasoning in Axis.” Rick and Charina further explore how these rulings shape risk allocation across vendor chains and offer practical considerations for drafting and enforcing data security agreements.