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N.Y. Court: 'In Transit' Clause Covered Theft While Plaintiff's Cash Was Being Processed at Vault

An intermediate appellate court in New York ruled that insureds were entitled to coverage under the In Transit clause of an insurance bond for losses they sustained while their cash was being processed at a vault in between the Federal Reserve Bank and the insureds check-cashing businesses.

By Steven A. Meyerowitz, Esq., Director, FC&S Legal | Updated on March 21, 2014

Editor’s note: Steven A. Meyerowitz, Esq., is a director of FC&S Legal. FC&S and PC360 are both owned by Summit Professional Networks.

An intermediate appellate court in New York, reversing a trial court’s decision, has ruled that insureds were entitled to coverage under the “In Transit” clause of an insurance bond for losses they sustained while their cash was being processed at a vault in between the Federal Reserve Bank, where it was picked up, and the insureds’ check-cashing businesses and ATMs, where it was to be delivered.

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