A commentary on insurance coverage issues in Hawaii and beyond
While the Arizona Appellate Court found limited coverage for a computer fraud attack against the insured, it also determined there were multiple occurrences. AIMS Ins. Program Managers, Inc. v. Nat'l Fire Ins. Co., 2921 Ariz. App. Unpub. LEXIS 123 (Ariz. Ct. App. Feb. 4, 2021).
Thieves secretly accessed from an…
The court found there was no coverage for the property management company after a fraudster sent a false email with wiring instructions, causing a loss of $200,000. Ernst & Haas Mgmt. Co. v. Hiscox, Inc., 2020 U.S. Dist. LEXIS 218379 (C.D. Calif. Nov. 5, 2020).
Ernst & Haas (E&H) employee…
Having failed to adequately secure cyber coverage, the insured law firm's lawsuit was properly dismissed by the trial court on summary judgment. Johnson v. Smith Bros. Ins., LLC, 2020 Vt. Unpub. LEXIS 98 (Vt. Sept. 4, 2020).
The law firm attended a CLE seminar presented by the Vermont Attorneys…
The multi-peril policy did not provide coverage for ransom paid to a hacker in order to retrieve its servers. G&G Oil Co. of Ind. v. Cont' W. Ins. Co., 2020 Ind. App. LEXIS 126 (March 31, 2020).
G&G Oil Company held a multi-peril commercial policy from Continental. The Commercial Crime…
Two endorsements precluded coverage for cyber theft experienced by the insured. Midlothian Enterprises, Inc. v. Owners Insurance Company, 2020 U.S. Dist. LEXIS 30237 (E.D. Va. Feb. 20, 2020).
JoAnne Davis received an email from the Midlothian president and shareholder, E. Bryce Powell, asking her to wire money to a specified bank…
The court found direct physical loss was established, allowing coverage for a ransomware attack on the insured's computer server and networked computers. Nat'l Ink & Stitch, LLC v. State Auto Prop. & Cas. Ins. Co., 2020 U.S. Dist. LEXIS 11411 (D. Md. Jan. 23, 2020).
The insured stored art, logos…
The Eleventh Circuit agreed that a sophisticated phishing scheme that persuaded an employee to wire money to a foreign bank account was a direct physical loss covered under a commercial crime policy. Principle Solutions Group, LLC v. Ironshore Indemn., Inc.,2019 U.S. App. LEXIS 36350 (11th Cir. Dec, 9, 2019).
At…
AIG's Motion to Dismiss the insured's claim based upon a fraudulent transfer of funds was largely denied by the court. SS&C Tech. Holdings v. AIG Spec. Ins. Co., 2019 U.S. Dist. LEXIS 194196 (S.D. N. Y. Nov. 6, 2019).
SS&C was a global provider of software and software-enabled services. In…
The appellate court found that the insurer's quote created an issue of fact on whether loss caused by a computer hacker would be covered. Metal Pro Roofing, LLC v. Cincinnati Ins. Co., 2019 Ind. App. LEXIS 355 (Ind. Ct. App. Aug. 9, 2019).
The insureds, Metal Pro Roofing, LLC and…
The federal district court granted in part, denied in part, the insurer's motion to dismiss a claim for computer fraud submitted under the insurer's crime protection policy. Childrens Place, Inc. v. Great Am. Ins. Co., 2019 U.S. Dist. LEXIS 70109 (D. N. J. April 25, 2019).
On July 24, 2017…
