Phishing victim can’t claim $5 million loss for money it never ‘held’

File this one under how-well-do-you-really-understand-your-cyberinsurance-policy.

Barbara Grzincic reports:

A commercial-crime insurance policy didn’t cover RealPage for a $5 million phishing loss because the property-management service provider never “held” any of the purloined money, a federal appeals court held.

The 5th U.S. Circuit Court of Appeals affirmed a win for AIG’s National Union Fire Insurance Company of Pittsburgh, which covered RealPage against losses from theft of property that the company owned, leased, or “held for others.”

The appeals court said RealPage’s loss didn’t qualify: it had only provided information and instructions to an online payment processor, Stripe, which transferred rent money from tenants to the property management firms that RealPage represented.

Read more at Reuters.

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