A Texas appeals court is currently examining a significant legal battle between the insurtech company SafeLease and the software provider Storable. This case is capturing attention due to its potential impact on data access and the rules governing software platforms in the insurance industry.
On April 17, the Fifteenth Court of Appeals in Texas listened to arguments regarding whether Storable should continue to allow SafeLease access to its property management software. This software is crucial for self-storage operators, helping them manage rental records, payments, and tenant information.
The heart of the dispute lies in how SafeLease gained access to Storable’s platform. Instead of following the usual process by securing a formal application programming interface (API), SafeLease obtained login details directly from individual storage operators. Storable argues that this method was unauthorized and violated its terms of service, potentially compromising the platform’s performance and customer data security.
Court documents reveal that Storable had raised concerns about the risks associated with this unauthorized access, warning that it could lead to the exposure of sensitive information, including tenant addresses and identification numbers. Storable’s usage policies clearly restrict access to licensed users and prohibit unauthorized commercial use.
SafeLease contended that Storable’s fees for API access were too high and anti-competitive. When the situation escalated, SafeLease filed a lawsuit in Travis County District Court, seeking an emergency order to maintain its access. Although the court initially granted a temporary restraining order, it later denied SafeLease’s request for extended relief after reviewing the evidence.
In a strategic move, SafeLease shifted the case to the newly established Texas Business Court, which handles complex commercial disputes. On January 21, 2025, this court issued a temporary injunction requiring Storable to restore SafeLease’s access for existing clients. However, SafeLease had to post a $6.6 million bond to enforce this ruling.
Storable quickly appealed the injunction, arguing that SafeLease was trying to exploit the court system and that the Business Court lacked jurisdiction due to a missed deadline for transferring the case. Storable also expressed broader concerns, stating that SafeLease had utilized automated tools to extract data, which strained its servers and compromised security.
Testimony revealed that SafeLease encouraged its clients to find alternative ways to access the platform, sometimes sharing login credentials or even using personal email accounts. In response, Storable took measures to block these unauthorized accesses, intensifying its technical defenses throughout late 2024.
With its access cut off, SafeLease returned to court, claiming that it could not service its policies without the platform. The Business Court ultimately ruled in favor of SafeLease, indicating that there was a probable case of tortious interference with customer contracts. However, it did not support SafeLease’s antitrust claims, removing allegations of monopolistic behavior from its final order.
The injunction remains active during the appeal process but only applies to SafeLease customers who were active as of January 21. SafeLease cannot sign up new clients through Storable’s systems at this time.
This case highlights the challenges that can arise when companies bypass formal agreements in favor of shortcuts. For those in the insurance and technology sectors, it serves as a reminder of the importance of clear agreements and the risks of relying on unauthorized access methods.
For SafeLease, the outcome is critical. Without access to Storable’s software, the company warns that it cannot underwrite or manage many of its insurance policies. Storable, on the other hand, emphasizes the importance of maintaining the integrity of its platform and upholding contractual agreements to preserve client trust.
As the landscape of insurance technology continues to evolve, the resolution of this case may set important precedents for how companies engage with software platforms in the future.