State Bank of Bellingham v. BancInsure, Inc.

SHEPHERD, Circuit Judge.

A computer at the State Bank of Bell-ingham (Bellingham) became infected with malware, allowing a criminal third party to transfer $485,000 from Bellingham to a foreign bank account. Bellingham sought coverage for the loss under its Financial Institution Bond (Bond) issued by Bancln-sure, Inc. (Banclnsure). Banclnsure denied coverage based on exclusions in the Bond. Bellingham filed this action, claiming breach of contract. The district court 1 granted summary judgment in favor of Bellingham, and Banclnsure appeals. We affirm.

I

Bellingham, a Minnesota state bank with…