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Differences Between Cyber & Crime Insurance
19 June 2019
Cyber crime is at an all-time high, with a growing number of criminals realising that it’s easier to earn money without getting caught through digital means than physical theft.
It is now more important than ever to protect your business against cyber crime through robust procedures, technology, and insurance. But what crimes fall under a Cyber policy, and which ones fall under a Crime policy?
Cyber cover protects your business in the event of your data or systems being compromised by a hacker or virus. This includes third party claims and insurable fines for breach of privacy legislation (such as GDPR), transmission of viruses, and defamation in electronic communications. It also includes your own losses in dealing with cyber attacks or extortion, including expert assistance in handling the event, costs in reinstating your computer systems following a loss, and your lost profit following a system outage.
If you cannot trade effectively without your computer systems, or if you hold personal or sensitive data, you likely need a cyber policy.
Crime cover protects your business against theft of money, securities or property, including through fraud by employees and the fraudulent acts of third parties.
A good Crime policy also includes Social Engineering. Social Engineering is the use of deception to manipulate individuals into acting in the fraudsters interests. One example would be a “fake CEO” e-mail, where a fraudulent e-mail is sent to the accounts department requesting a fake invoice is paid.
Most of these instances happen via your business’s own equipment, which is why a lot of companies confuse Crime policies with Cyber policies and vice versa.
If you are concerned about fraud, or if you hold or transfer large sums of money, you likely need a crime policy.
Not all Cyber policies cover all of what is detailed above, and not all Crime policies include social engineering cover. Contact us to discuss what cover is right for your business.
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