Insurance fraud is a growing global phenomenon. In the United States alone, it is estimated that insurance fraud is an $80 billion dollar industry, second only to narcotics trafficking. Not surprisingly the two are often connected.

Insurance policies abound with the use of the phrase arising out of. Some policies provide coverage for injuries and damage that arise out of a certain event; other policies exclude coverage for injuries and damages that arise out of a certain event.

Risk managers are aware of the cyber attacks their businesses face, but a large portion of them say they are not doing enough to combat that threat, according to The Hartford Steam Boiler Inspection and Insurance Co.'s Cyber Risk Survey.