April 8, 2010

An employee stole money from our insured. The employee admitted to taking money from members’ accounts. The police confiscated her work computer hard drive, which had to be replaced, and the data from the confiscated hard drive had to be copied to the new hard drive. Would these costs be covered?

Wisconsin Subscriber

This type of situation would not be covered. The crime and property forms generally carry governmental action exclusions, which exclude seizure by government entities. In order for the data duplication costs to be covered, the data must have been lost or damaged by a covered cause of loss, and the governmental seizure would not be covered.