Favoring Coverage For Business Email Compromise Losses

Law360 (August 9, 2018, 4:18 PM EDT) -- A current (and frequent) cyber-related coverage issue being litigated vigorously between insureds and insurers in courts throughout the country is whether fraudulently induced monetary transfers are covered under traditional fidelity and crime policies. Depending on the manner in which these policies are written and interpreted, the risk is that insureds may find themselves without coverage for losses that are clearly criminal and fraudulent in nature. While courts have considered that these issues continue to split, two recent decisions from the Second and Sixth Circuits strengthen insureds’ arguments that traditional fidelity and crime policies provide coverage for fraudulently induced monetary transfers....