Courts Continue To Split Over Coverage For Email Scams

Law360, New York (September 8, 2017, 2:09 PM EDT) -- As instances of fraudulently induced monetary transfers continue to rise, policyholders should carefully review their insurance policies to understand what forms of computer fraud-related loss are covered. In the absence of a standalone cyberliability policy, fidelity and crime insurance policies may limit coverage to unauthorized system access, along the lines of computer hacking. Such policies may also limit coverage only to losses that are the "direct" result of computer fraud. As a result, policyholders may find themselves without coverage for losses that are not caused by direct hacking into a computer system — such as instances where employees are induced to...

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