With cyber fraud becoming more prevalent in today’s business world, policyholders should be aware of some of the points raised by commercial crime insurers to deny coverage.
On August 30, 2016, a Georgia Federal Court held that a commercial crime insurer must cover a $1.717 million loss suffered by its insured because of a wire transfer caused by a fraudulent e-mail. The Court rejected the insurer’s argument that the loss needed to result “directly” from the e-mail sent by the insured to its bank, reasoning that the insurer’s argument would “limit the scope of the policy to the point of almost non-existence.”
Sep 14, 2016
Phillip A. Perez