SJ Computers Loses Bid for Insurer to Cover Entire Fraud Scheme

An insurance company won’t have to cover SJ Computers LLC’s losses arising out of a fraud scheme that cost the Minnesota-based store $600,000, after a federal judge ruled that the claims fall under a policy that only covers up to $100,000.

SJ Computers sued Travelers Casualty and Surety Co. of America, claiming that it breached its insurance contract by refusing to cover nearly $600,000 that the company’s CEO wias tricked into wiring to a still unidentified fraudster.

SJ Computers submitted its claims under a policy that covers social-engineering fraud claims, and then backtracked when it learned that the policy only ...