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Office of the Special Deputy Receiver: Seventh Circuit applies Fraudulent Instructions Exclusion in finding No Coverage for Computer Systems Fraud Loss

In the recent decision of Office of the Special Deputy Receiver v. Hartford Fire Ins. Co., the Seventh Circuit Court of Appeals affirmed the District Court’s dismissal of an insured’s action seeking indemnity under a Computer Systems Fraud rider.  The Seventh Circuit applied a different rider’s Fraudulent Instructions exclusion to find no coverage for the … Continued

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Blue Compass RV: Fifth Circuit analyzes meaning of “Vendor” in finding No Coverage for Social Engineering Fraud Loss under Crime Policy

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

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Cadaret, Grant & Co.: U.S. District Court finds No Coverage under Financial Institution Bond for Registered Representative’s Selling Away Ponzi Scheme

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

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Gore, Kilpatrick & Dambrino PLLC: U.S. District Court finds No Social Engineering Fraud Coverage in Phony Debt Collection Fraud

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

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Westlake Chemical: Texas Court of Appeals applies Authorized Representative Exclusion in finding No Coverage under Crime Policy for Phony Invoicing Scheme

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

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Cachet Financial Services: U.S. District Court finds No Coverage under Commercial Crime Policy for Alleged ACH Kiting and Related Frauds

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

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Sportsinsurance.com: Second Circuit applies Suit Limitation Period to Dismiss Action on Commercial Crime Policy

On November 4, 2022, the Second Circuit Court of Appeals released its decision in Sportsinsurance.com, Inc. v. The Hanover Insurance Company, Inc.  The Court applied a commercial crime policy’s suit limitation period in finding that an insured’s coverage action was not timely.  Critically, the Court also rejected the insured’s waiver and estoppel arguments which were premised … Continued

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