On June 5, 2026 the Fifth Circuit Court of Appeals released its decision in Blue Compass RV, L.L.C. v. Twin City Fire Ins. Co. The Fifth Circuit affirmed the District Court’s dismissal of the insured’s social engineering fraud (SEF) claim under several non-SEF insuring agreements on the basis that the claimed loss fell squarely within … Continued
In the recent decision of Cadaret, Grant & Co. v. Great American Insurance Co., the U.S. District Court for the Eastern District of New York applied the “direct loss” requirement of coverage, the ownership condition and the legal liability exclusion to find no coverage under a Financial Institution Bond in respect of a registered representative’s … Continued
On March 31, 2026 the U.S. District Court for the Northern District of Mississippi released its decision in Gore, Kilpatrick & Dambrino PLLC v. Spinnaker Ins. Co. The Court interpreted the requirements of a Social Engineering Fraud (SEF) insuring agreement in a cyber policy in the context of a phony debt collection fraud perpetrated on … Continued
On September 19, 2023, the U.S. District Court for the District of Massachusetts released its decision in Brooks & Derensis, P.C. v. Twin Cities Fire Insurance Co. The Court held that no coverage was available to a law firm that transferred funds out of its trust account on the strength of a cashier’s cheque which turned … Continued
On May 25, 2023, the Texas Court of Appeals released its decision in Westlake Chemical Corporation v. Berkley Regional Insurance Company. The Court affirmed the District Court’s summary judgment in favour of the insurers on the basis that the Authorized Representative Exclusion applied. The Court’s decision is notable in finding that the exclusion does not require … Continued
In the recent decision of Cachet Financial Services v. Berkley Insurance Company, the United States District Court for the Central District of California found no coverage under a commercial crime policy in respect of several alleged frauds involving a payroll processor. The decision is instructive for fidelity claims professionals as to the meaning of “alteration” in … Continued
On September 6, 2022, the Eleventh Circuit Court of Appeals released its decision in Star Title Partners of Palm Harbor, LLC v. Illinois Union Insurance Company. In deciding that a social engineering fraud (SEF) loss did not fall within the coverage afforded under a Deceptive Transfer Fraud insuring clause, the Court construed the terms “employee,” “customer,” … Continued
On February 4, 2021, the Fifth Circuit Court of Appeals released its decision in Mississippi Silicon Holdings, LLC v. AXIS Insurance Company. In affirming the lower court’s grant of summary judgment in favour of AXIS, the Fifth Circuit made important findings regarding the proper scope of the Computer Fraud coverage; whether a fraudster’s opening of a … Continued
