Yes — funds transfer fraud (FTF) coverage includes funds held in escrow.
Our policy coverage is broad, and includes cover for fraudulent instructions transmitted by electronic means, including through social engineering, that debit an account of the named insured or subsidiary and to transfer, pay, or deliver money or securities from such account.
This last part ("that debit an account of the named insured or subsidiary and to transfer, pay, or deliver money or securities from such account") is the key bit. This covers accounts of the named insured, or subsidiary, that may hold another entity’s/person’s money within that account. (escrow most notably).
Please refer to our policy for full coverage details.