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Reply to Theft (via Cyber Attack) Covered by General Liability?     
Old 09-11-2015, 01:18 PM   #1
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State: TGART is an Insurance Agent from New York
Theft (via Cyber Attack) Covered by General Liability? Theft (via Cyber Attack) Covered by General Liability?
Hi All,

Looking for some guidance here for a client. Their finance dept was fooled by an email coming from an employees email account which had been broken into. They replicated fairly a fairly standard request for payment though this went to an account owned by the criminals. What's your experience in getting this covered in a standard Commercial Liab policy as theft?

Thanks!!
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  Reply With Quote to Theft (via Cyber Attack) Covered by General Liability?
Old 09-11-2015, 10:21 PM   #2
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State: cgreene is an Insurance Agent from
Theft (via Cyber Attack) Covered by General Liability?
This is where cyber insurance comes into play. The GL policy will cover some if your lucky.
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Old 09-13-2015, 09:49 AM   #3
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State: TGART is an Insurance Agent from New York
Theft (via Cyber Attack) Covered by General Liability? Re: Theft (via Cyber Attack) Covered by General Liability? TGART is the thread starter for: Theft (via Cyber Attack) Covered by General Liability?

Yea, that's what I'm hoping - the theft of money's coverage will kick in. They have internet insurance, though it pertains to the theft of their clients data, not someone phishing and making a fake wire request from an internal source. With any luck the GL will cover a portion and the umbrella the rest. Expensive lesson for sure... needless to say, they're now reviewing their security protocols.
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Old 01-14-2016, 03:18 PM   #4
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State: kristophmarsh is an Insurance Agent from Undisclosed Location
Theft (via Cyber Attack) Covered by General Liability? Re: Theft (via Cyber Attack) Covered by General Liability?
Certainly won't be covered by a standard general liability policy. I wouldn't expect it to be covered by the theft section of a business package or property policy either, unfortunately.

The best option for having something like this covered is either through a commercial crime or cyber liability policy. If your client is a typical small or medium business, it's unlikely that they'll hold either of these coverages stand-alone; however, you never do know. They'll certainly be thinking about it after running into this!

For clients concerned about these types of exposures, I'd consider taking a look at Management Liability (ML) policy. Most ML policies include some level of crime coverage, and with a bit of luck, it will cover first and third party theft.

To give you an idea of what I'm talking about, I took a look at the crime component of the AIG PrivateEdge wording (UK). The policy covers an insured for "financial losses" resulting from "dishonest acts" by any employee or third party. A "third party" is defined as anyone who isn't an employee.

Quite broad coverage I must say! You'd just need to convince the insurer that it's the insured that suffered the loss and not the employee.

Alternatively, cyber coverage would be worth a look. But if you could figure out a way to acquire both in a ML product, now that would be something!
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Old 01-14-2016, 03:52 PM   #5
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State: BigIVU is an Insurance Agent from Tennessee
Theft (via Cyber Attack) Covered by General Liability? Re: Theft (via Cyber Attack) Covered by General Liability?
The CGL provides coverage for third party claims, not the theft of your own money. The ISO Commercial Crime program has Computer Fraud coverage and the just introduced a form some insurers have been making available for theft by impersonating an employee. There are also cyber policies that should cover this.
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Old 01-14-2016, 06:59 PM   #6
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State: EObroker is an Insurance Agent from
Theft (via Cyber Attack) Covered by General Liability? Re: Theft (via Cyber Attack) Covered by General Liability?
There is a specific coverage designed to cover this exposure and it is called Cyber Deception and/or Social Engineering. It can be added via endorsement to a Crime or Cyber policy depending on the carrier. I have been able to cover it both ways for multiple different industries, and have multiple claim examples that can be disscussed. I can help walk you through placing this coverage, as well as provide a product specific brochure for you and your clients. Please free to reach out to me at any time. All the best, Ant!
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