Crime Insurance has been around for decades with a focus on protecting companies from employee and vendor theft, fraud and forgery.
By contrast, Cyber Insurance was created to protect companies from damages occurring from cybercrime. The first cyber policies covered such things as customer notification, credit monitoring and other related services, as well as third-party liability.
Today, the lines are blurred. In a highly connected business landscape, ransom, embezzlement, and many other types of loss now have a different criminal face. Some are covered under a crime policy; others are covered by cyber insurance. So how do you determine what constitutes a crime loss versus a cyber loss? Alliant Insurance Services offers this guidance:
While this guidance helps, these policies are more complicated in real life, especially as cybercrime and insurance protection both continue to evolve.
For example, cyber insurance policies not only include coverage to reimburse for expenses associated with a data breach. They now include coverage for:
Cyber insurance gets a lot of attention; however, crime insurance should not be overlooked. Though crime insurance covers the loss or theft of money, securities, or other property, it can include computer fraud insurance, which covers the loss of company assets transferred by use of a computer to an unauthorized person or place.
No matter your industry or company size, every company is at risk for cybercrime. Take the time to educate yourself, review your policies and confirm your coverage. Your LMC Account Executive is available to help.
880 Locust Street, Suite 200
Dubuque, IA 52001
Phone: (563) 556-0272
An AssuredPartners Agency
In February 2020, The Friedman Group joined AssuredPartners, the 11th largest insurance brokerage in the U.S. This partnership provides us access to additional capital and a national footprint that enables us to continue to negotiate the most favorable coverage terms and conditions for our clients, and allows us to provide an even broader spectrum of risk management support services.