Phishing For Coverage Under Crime Policies

Originally published by Law360, May 22nd, 2017

Co-author: Marc D. Schein, a certified insurance counselor and commercial lines coverage specialist, is a risk management consultant for Marsh & McLennan Agency LLC.

Crime policies, among others, typically provide what seems like a broad grant of computer coverage, such as "We will pay for loss ... resulting directly from the use of any computer to fraudulently cause a transfer ... ." Apache Corp. v. Great American Insurance Co., 2016 WL 6090901(5th Cir. 2016). Companies victimized by phishing schemes have sought coverage under the computer provisions of their insurance policies for their losses. They have met with no success in the courts.