A U.S. appeals court has rejected an insurer's “direct loss” defense and ruled that a national retailer is entitled to recover nearly $7 million for a computer hacking claim.

The case involved DSW Shoe Warehouse and National Union Fire Insurance Co.—a subsidiary of American International Group Inc. (AIG).

The ruling by the U.S. Court of Appeals for the Sixth Circuit in Ohio upholds a district court summary judgment in the state that turned away AIG's attempts to exclude coverage with several exclusions, including that the “direct loss” provision in its crime insurance policy excluded the retailer's computer hacking claim, according to law firm Anderson Kill & Olick (AKO), who represented DSW.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.