Question 1

How does third-party computer crime and cyber liability differ?

Accepted Answer

Cyber liability policies principally cover breaches resulting in theft of personal information or corruption of data and the consequential losses as a result of such. Third-party computer crime covers the direct financial loss as a result of access to an Insured computer system excluding consequential loss and access of confidential information.

Question 2

What is social engineering?

Accepted Answer

Social engineering refers to a variety of techniques used to elicit information and trick individuals into voluntarily performing actions. Social engineering loss essentially refers to acts of fraud committed by means of a person deceiving or misleading an employee of the Insured through misrepresentation of a material fact that the employee has relied upon, believing it to be genuine and causing the transferring, paying or delivering of cash and/or other property.

Question 3

What limit of indemnity should be purchased?

Accepted Answer

The limits of indemnity are combined limits across all insuring clauses and aggregated for total losses in the period of insurance. One needs to take into account the value of costs incurred in investigating a loss and defence costs incurred in defending allegations of wrongfulness aside from any damages award or claim that may be paid under the policy. The appropriate limit of indemnity will depend on a number of factors including the nature and size of the business, contracting limitations, and transaction values. Your broker will be best placed to advise on the most suitable limit of indemnity.

iTOO

Questions about Financial Lines and Crimes Insurance?