Social Engineering Endorsements That Protect Clients

Social Engineering Endorsements That Protect ClientsIn recent years, hackers and cyber-thieves have developed new ways to acquire sensitive bank accounts information. 

Early phishing scams were fairly easy to spot: a request from a Nigerian prince or a fake link to your bank’s customer service center where you would be required to input your information. Now they have gotten a lot more elaborate and can fool CEOs.

Cyber carriers are beginning to offer policy enhancement endorsements that affirm coverage for CEO Fraud or Social Engineering Fraud. The wording that you should be on the look out for may be similar to this:

“The insurer will pay the Insured Entity for Social Engineering Fraud Loss resulting directly from a Social Engineering Fraud Event, in excess of the applicable retention and within the applicable Limits of Insurance.”

“It is a condition precedent to coverage under the Social Engineering Fraud Coverage that the insured attempted to Authenticate the Fraudulent Instruction prior to transferring any Money Securities.”

Don’t believe the Nigerian Prince when he sends you an email asking for money. To make sure you have the right policy limits on your New York commercial insurance and have the proper coverage for all of your business’ needs, contact Perry & Carroll in Elmira.