Article ID: ebec0aa177b4f53578aae7aca201b47a7db9d76e924078ad1816ea70e129f5d3
Source ID: secondary:businessinsurance.com
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URL: https://www.businessinsurance.com/court-bars-cyber-policyholder-from-claiming-double-limit/
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Court bars cyber policyholder from claiming double limit - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Court bars cyber policyholder from claiming double limit by Gavin Souter Coverage Disputes , Cyber Risks , Emerging Risks , Technology Mar 12, 2026 A construction company is not entitled to additional cybercrime insurance payments after fraudsters tricked it into wiring nearly $875,000 to a fake vendor account, a federal court ruled. In Perry & Perry Builders Inc. v. Cowbell Cyber Inc. et al. , the U.S. District Court for the Western District of Texas granted summary judgment Monday to insurers Cowbell Cyber and Obsidian Specialty Insurance, ruling that the policy’s $250,000 cybercrime sublimit applied even though the funds were transferred in two payments. Perry & Perry Builders Inc. argued it was entitled to a second $250,000 payment after its business manager split a fraudulent payment totaling $874,863.70 into two electronic transfers linked to separate invoices from a steel supplier. The transfers were made about a minute apart after the company received an email from fraudsters posing as the vendor. The insurers had already paid the policy’s $250,000 cybercrime sublimit for the loss. The court rejected the contractor’s argument that the two transfers were separate covered claims, stating that the number of claims could not be determined by a policyholder’s “bookkeeping choices.” “The policy endorsement caps at $250,000 what Defendants must pay for all of Perry’s cyber losses during the policy period, regardless of the number and value of each such loss,” the court ruled. Related News Brown & Riding names Lowe casualty practice head March 12, 2026 Ascot names CFO for US business March 12, 2026 OSHA citation vacated in railcar unloading injury case March 12, 2026 Dual expands US surety limits March 12, 2026 Marsh Risk, Skyward unit partner on Uber insurance program March 12, 2026 Spellcheck, but make it litigious March 12, 2026 Court affirms dismissal of lawsuit following worker’s death March 12, 2026 Illinois appeals court revives asbestos reinsurance dispute March 12, 2026 Middle East conflict triggers real-time insurance repricing: Aon March 12, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
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