One gift you should not forget during the holiday season is the gift of security. Acuity offers Cyber Suite coverage, a range of coverages designed to protect your commercial insureds from hackers and viruses. Here are two of the newest coverages that are part of Acuity’s Cyber Suite:
Misdirected Payment Fraud. This coverage is triggered when the insured is the victim of a wrongful transfer event—an intentional and criminal deception of the insured or a financial institution with which the insured has an account. The deception must be perpetrated by a person who is not an employee, using email, fax, or telephone communications to induce the insured or the financial institution to send money or divert a payment. The deception must result in direct financial loss to an insured. The coverage provides reimbursement for the amount fraudulently obtained from the insured.
How does Misdirected Payment Fraud coverage respond in the event of a claim?
Here’s an example: A finance department employee received an email that looked like it was from the company’s CFO directing that employee to send a wire for an overdue vendor invoice. Later that day, after sending the wire, the employee bumped into the CFO in the hallway and mentioned that the payment was sent. The CFO said she never sent any such request. The employee checked the email and noticed that the CFO’s name was misspelled. The company had been duped by a fraudster who made an outside email look like it came from the CFO. The coverage would reimburse the amount of the wire.
Computer Fraud. This coverage is triggered when the insured is the victim of a computer fraud event—unauthorized access to the insured’s computer system that leads to the intentional, unauthorized, and fraudulent entry of or change to data or instructions within the computer system. Such fraudulent entry or change must be conducted by a person who is not an employee, executive, or independent contractor. Such fraudulent entry or change must cause money to be sent or diverted. The fraudulent entry or change must result in direct financial loss to the insured.
How does Computer Fraud coverage respond in the event of a claim?
A hacker found his way into a company’s computer system and changed the banking instructions on several employees’ payroll accounts, mapping the payroll deposits to his bank account. After several employees complained they did not get their pay, the company investigated and realized they had been hacked. The coverage reimbursed the amount of the diverted funds.
The overall Cyber Suite coverage from Acuity is designed to help businesses respond to a range of cyber incidents, including breaches of personal information, threats of unauthorized intrusion into or interference with computer systems, damage to data and systems from a computer attack, and cyber-related litigation.
Make sure to sell the gift of security to your insureds this holiday season.
With content from The Hartford Steam Boiler Inspection and Insurance Company (“HSB”). All rights reserved.