Phone and Internet availability, while vastly increasing the speed of communication in the business world, is not without its own particular risk. FC&S® frequently receives questions about coverage for financial loss arising from these modes of communication, such as the following:
My insured has two T-1 lines for phone and Internet communications. His normal phone bill for these are about $8,000 to $10,000 per month. The system was hacked into by unknown parties, and a monthly bill in excess of $100,000 was generated during that month. Where would coverage fall for a claim of this nature?
Absent a special type of coverage for this type of loss, I doubt that coverage can be found for this loss on either the typical crime or commercial property policies.
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