U.S. Case Spotlights Cyber Coverage

In 2016, "cyber" had increased prominence in the minds of organizations and with good reasons. "Hacking" not only made the headlines because of allegations that hackers were interfering with the U.S. presidential election, but also due to their targeting of power utilities in Ontario and Vermont, to name a few.

In an age of manipulative forms of cybersecurity breaches, insurance coverage is important. However, there is sometimes a disconnect between the type of coverage the buyer thinks he or she is getting and what the policy actually covers.

This was a particularly important focus in Apache Corp. v. Great American Insurance Company (Apache), where the U.S. Court of Appeals for the Fifth Circuit adopted a narrow interpretation of a crime insurance policy, finding that it did not cover a loss resulting from a fraudulent e-mail directing funds to be sent electronically to the imposter's bank account because the scheme did not constitute "computer fraud" under