Travelers Sued Over Coverage for Claims in Wire Transfer Row

A Travelers Cos. insurance unit was hit with a suit by an Alaska construction company seeking coverage for claims it failed to verify fraudulent wire instructions that resulted in the transfer of funds to an imposter’s bank account in New Jersey.

Travelers Casualty and Surety Co. of America wrongly denied coverage for Alaska Frontier Constructors Inc.'s legal defense costs and settlement paid for the fraudulent $1.9 million transfer, according to a lawsuit the construction company filed Nov. 22 in the US District Court for the District of Alaska.

AFC’s chief financial officer received an email in October 2023 purporting to ...