Some policy forms I recently came across for the first time that may be good to be aware of and to be on the lookout for: A commercial auto exclusion for physical damage to wraps. It is a 2021 ISO commercial auto endorsement. Wrap refers to complete or partial covering over the original paint of […]
Crime Insurance
Another Claims Expense Form to Be Wary Of
I have posted previously about the benefit of having a healthy limit (i.e. $100k minimum) of claims expense coverage on a crime insurance policy in order to cover the expense of a forensic accountant, or a similar service, to establish the amount of a loss. Furthermore, I have cautioned to beware of some carriers that […]
Beware of Multiple Change in Control Provisions
Businesses involved in M&A transactions will typically look to the change of control provision in claims-made type of policies to see how such activity impacts coverage going forward. The clause may stipulate that the policy will be terminated or that coverage can be maintained depending on the proportional change to the risk. It can vary […]
A Fiduciary Liability Policy Does Not Satisfy ERISA Bond Requirements
The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for qualified health plans and aims to provide protections for participating individuals. ERISA mandates that any person or employee handling funds of an ERISA plan must be bonded for up to 10% of the total amount handled, subject to a […]
Crime Coverage May Not Apply for an Insured That Never Controls the Money
Another very recent ruling to be aware of as it relates to crime and cyber insurance policies. The Fifth Circuit just yesterday ruled in favor of AIG that its crime policy would not have to cover its insured, a real estate software company, for a $6 million phishing scam loss because the software company didn’t […]
Review the Policy Definition of Extortion
Extortion coverage is a common insuring agreement included in cyber liability policies and is occasionally found in crime policies as well, particularly those that afford cyber crime coverages. Particular attention to the definition of extortion in policies is recommended since the breadth of its reach can vary amongst carriers and between those lines of coverage […]
Licensing Violation Coverage
Came across a licensing violation coverage endorsement today in a crime policy as part of a tech fraud package enhancement. It affords coverage, albeit with a sublimit, for fines and penalties arising out of the unauthorized reproduction of computer software, sound recordings, or visual media by an insured employee in violation of a licensing agreement […]
Switching Crime Insurance Coverage Trigger Forms
Akin to liability insurance policies that can be written on multiple forms as it relates to coverage triggers between occurrence and claims made forms, crime insurance has a similar dichotomy between loss sustained and discovery forms. Nevertheless, the potential gaps in coverage are not always contemplated when it comes to addressing a change in forms […]