Sausage Biz's Coverage Suit Over Hacker Scam Still Cooking

Law360 (September 19, 2019, 9:45 PM EDT) -- A Texas federal judge has ruled that Twin City Fire Insurance Co. wrongfully denied coverage to Quality Sausage Co. and its subsidiary after a hacker tricked an employee into transferring $1 million out of a client's bank account, ruling that the insurer "breached a duty that it owed."

Twin City had prevailed in 2018 on not having a duty to indemnify the precooked meat company and its subsidiary after they reached a settlement with the client, but U.S. District Judge Alfred H. Bennett ruled Wednesday that the insurance company still had a duty to defend the companies against the client's demand to be compensated for the loss....

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