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Does crime or cyber insurance cover business email fraud?

Insurance pros should review relevant cybercrime coverages with their commercial clients, Lockton suggests.

According to Lockton, commercial insurance clients who experience a cybercrime should be prepared to provide their insurance carrier with copies of communications evidencing the fraudulent instructions; Communications and other documentation establishing that the funds were not received by the proper party; Communications to and from the transferring and receiving banks, including confirmation by the banks that the funds cannot be recovered; Law enforcement reports and other documentation of the incident. (Photo: Rich H Legg/Free Use Image/ALM archives) According to Lockton, commercial insurance clients who experience a cybercrime should be prepared to provide their insurance carrier with copies of communications evidencing the fraudulent instructions; Communications and other documentation establishing that the funds were not received by the proper party; Communications to and from the transferring and receiving banks, including confirmation by the banks that the funds cannot be recovered; Law enforcement reports and other documentation of the incident. (Photo: Rich H Legg/Free Use Image/ALM archives)

Business email fraud is among the fastest-growing and most potentially damaging of cybercrimes, according to the FBI. That agency note that in 2021, its Internet Crime Complaint Center received reports of business email crime scams with losses exceeding $2.4 billion.

It follows that a new Lockton publication titled “Fraudulent Instruction Loss: How Crime and Cyber Insurance Policies Intersect“ suggests that commercial insurance clients need detailed advisement regarding the relief and limitations of specific insurance policies should they become victimized by an internet-driven fraud.

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Elana Ashanti Jefferson

Elana Ashanti Jefferson

Executive Editor Elana Ashanti Jefferson is a veteran journalist and communications professional. She can be reached by sending email to [email protected]

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