Senior associate Ken Kronstadt
authored the Westlaw Journal Insurance Coverage
article “Insurance Coverage for Social Engineering Fraud,” discussing recent court decisions regarding insurance coverage for social engineering fraud and what policyholders can do to increase the likelihood of getting coverage for losses resulting from social engineering fraud and other computer related scams.
Ken notes that while a few courts have found coverage under crime/fidelity policies, other courts have denied coverage, finding that the loss was not the direct result of the fraudulent scheme. Companies looking to ensure coverage on social engineering fraud should not assume that their policy – whether a crime/fidelity policy or even a cyberliability policy – provides coverage.
“Simply obtaining a crime/fidelity or cyberliability policy does not ensure coverage if a company falls prey to social engineering fraud. The specific language used in a company’s individual policy will always determine coverage,” wrote Ken.
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