Insurance Update

Insurance law involving cybercrimes continues to evolve.  The lead case in our August Insurance Update involves a fraudulent email scheme, where the policyholder was tricked into wiring money to an imposter. The issue was whether the loss was caused directly by computer fraud. In reversing the district court, the Sixth Circuit found that the loss was direct and immediate and that computer fraud was not limited to hacking. The court also found that an “Electronic Data” exclusion did not apply, setting up a split among circuit courts. In Aqua Star (USA) Corp. v. Travelers Casualty and Surety Company of America (discussed in our May Insurance Update), the Ninth Circuit found that an Electronic Data exclusion barred coverage for a similar fraudulent scheme.

Other cases in this month’s update involve the effectiveness of a “notice of circumstances,” the breadth of pollution exclusions and an assault-and-battery exclusion, the validity of a policy assignment, and the availability of excess coverage for asbestos liability.

We hope that you find these topics interesting.

Click here to read the Update.