By P.J. D’Annunzio (June 10, 2022, 12:44 PM EDT) — Federal Insurance Co. on Thursday beat a lawsuit brought by one of its insured after FIC denied coverage for a hacked transaction that cost the insured company $1.3 million, when a Pennsylvania federal judge said the policy didn’t cover “social engineering.”
U.S. District Judge John M. Younge’s summary judgment ruling held that the fraudulent transfer initiated by someone with unauthorized access to Construction Financial Administration Services LLC’s system is not covered under the policy’s breach exclusions, rejecting CFAS’ claim that its own negligence was partly to blame, which would allow for coverage.
“The language of both exclusions clearly contemplates losses precipitated…
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