The insuring company is legally obligated to respect its contract terms. In this case they are very clear. "In case of employee theft and hacking" and it even insure an extra over the average price.
If the loss was caused in a way that could be proved to be outside the contract terms, then and only then they could deny and not get rolled over in court for doing so.
Sure but that is difficult to prove, and these bitcoin insurance contracts are usually 100+ pages long so it's hard to determine what exactly happened and if the contract covers that aspect of it.
Also if the suspicion arises (it could be in many cases) then the insurer could get an investigation going about wheather it was an insire job or not, to not get defrauded.
The inside jobs are very common these days with many companies so i dont blame the insurer for that, but it's just funny because all this uncertainty will make customers less safe and less trust about the company.
Plus with these events going on, i doubt many customers feel safe about this insurance, because they might not really be so.
But according to the contract overview, insider job is also covered. I'm guessing they have some sort of system where it make it very hard for a single person to just steal Bitcoin, or a significant amount with typical multi-key (In this case multi key signatures) to unlock a vault (or in this case the wallet).
It must be solid enough for the insurer to having decided the premium collected is worth the statistical risk that could be loss in case of theft, hack or insider job.
