Tricked into Wiring LOTS of Money...covered?

[insurance1822]

I have a personal lines client (I don't insure their business..) who's controller was tricked into wiring $35,000 to an overseas account. The email appeared to have come from the business-owner, however upon clicking "reply" to the email it was replying to was entirely different address. How this complete fool of a controlled allowed this is beyond me.

Anyway...is this covered somehow?

 

[insurance1822]

I'm referring to a standard BOP that (I assume..) he would have on his business.

 

[Indiana_Adam]

Maybe coverage on the BOP if he has some employee dishonesty?

 

[Verbgravy]

There should be coverage under BOP or CPP. Why isn't he asking the person that does insure his business?

 

[Norwayguy]

There should be coverage under BOP or CPP. Why isn't he asking the person that does insure his business?

Too ashamed to admit he has such a stupid controller?

 

[INSUREGEEK]

In my experience most Crime coverages, like Form A - Employee Dishonesty, and Form C - Money & Securities do not cover what's called "voluntary parting" unless the exclusion is specifically removed.

If claiming on Form A there also has to be a prosecution of the employee.....and most insured's simply can't or won't take it that far, like in this case where it wasn't a criminal act with the intent to steal and recovery from the employee is highly unlikely.