Eighth Circuit Finds That Insurance Coverage Extends To Fraudulent Losses Caused By Computer Hacker
Bethany Rupert of King & Spaulding provides additional coverage of an appellate ruling I had previously noted on this site:
On May 20, 2016, the U.S. Court of Appeals for the Eighth Circuit affirmed breach-of-contract claims brought by Minnesota-based State Bank of Bellingham (“Bellingham Bank”) against BancInsure Inc. (“BancInsure”), an insurance company that refused to provide coverage when the bank suffered losses after a criminal third party hacked the bank’s computer system and transferred funds to a foreign bank account.
The case is State Bank of Bellingham v. BancInsure Inc. n/k/a Red Rock Insurance Co., case number 14-3432, in the U.S. Court of Appeals for the Eighth Circuit.
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