Financial fraud, in which company employees are tricked into sending payments or securities through email, telephone, letter or other method, is an increasingly common act not covered by typical crime insurance policies.
As such, the
Chubb Group of Insurance Companies has created a crime insurance endorsement with coverage available up to $250,00 per occurrence to protect companies.
The Social Engineering Fraud Endorsement has no annual aggregate and higher limits may be negotiable for qualified customers.
Greg Bangs, vice president and worldwide crime insurance manager for Chubb, explained that the endorsement is an important one as many crime policies will not respond when social engineering leads employees into making payments to third parties.
“As organizations continue to seek to improve their computer security, social engineering scams are taking aim elsewhere—at human beings,” Bangs said. “It’s easy for a thief to pose as a vendor and request by email that a payment be directed to a new bank account.
“The company may not realize it was defrauded until weeks or months later when the vendor sends out an overdue payment notice.”
The Social Engineering Fraud Endorsement can be added to existing crime insurance coverage through the following Chubb policies: Executive Protection PortfolioSM, Health Care PortfolioTM, ForeFront Portfolio for Not-for-Profit OrganizationsTM and Forefront Portfolio 3.0TM.
