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Nancy Adams is a Member in the firm’s Boston office. Nancy has extensive experience representing and advising primary and excess insurers on the business and legal implications of a variety of complex coverage issues involving property and casualty and life insurance. Her experience includes representing insurers with respect to coverage disputes arising under directors and officers, professional liability, managed health care, life, aviation, fiduciary, financial institutions, crime, automobile, homeowners, and general liability policies.

The “business compromise email”  is what the FBI calls the “$5 billion scam,” but apparently an insurance company did not agree with an insured company that they had been the victim of a crime.

A federal court recently found that a crime policy afforded coverage for a $4.8 million wire transfer that an insured company was duped into making.  See Medidata Solutions, Inc. v. Federal Ins. Co., 15-CV-907 (SDNY July 21, 2017).   In this case, the thief took advantage of “real” facts, posing as the insured’s attorney for a corporate transaction.   More specifically, the insured was contemplating an acquisition and, as part of that process, the president instructed the finance department to be prepared, on an urgent basis, to assist with the transaction.  Continue Reading Court Holds Crime Policy Covers Business Compromise Email Loss

We previously reported here that CNA filed a lawsuit against its insured Cottage Health System seeking reimbursement of amounts that it previously paid under Cottage’s cyber liability insurance policy.   On Friday, a federal district court dismissed, without prejudice, CNA’s lawsuit because CNA failed to exhaust the policy’s required non-judicial remedies before filing suit.   The applicable cyber liability insurance policy provided that “[a]ll disputes and differences between the Insured and the Insurer which may arise under or in connection with this policy … shall be submitted to the alternative dispute resolution (“ADR”) process” and, if mediation is chosen, a lawsuit cannot be filed “until the mediation shall have been terminated and at least 60 days shall have elapsed from the date of termination ….”     The federal district court found that  CNA did not allege in the complaint, nor did CNA allege otherwise, that it satisfied the ADR provision.   “That [CNA] has not exhausted the non-judicial remedies required by the contract is therefore apparent on the face of the Complaint.”   Although CNA requested that the court stay the lawsuit pending the parties’ mediation, the federal court dismissed the complaint without prejudice to permit the parties to pursue ADR under the terms of the policy.