Social engineering attacks continue to grow in sophistication and frequency, costing companies millions of dollars—and putting client data and confidentiality at extreme risk. Beazley’s new policy provides coverage up to $5 million in excess of underlying coverage of at least $250,000.
PRODUCT: Excess social engineering policy
COMPANY: Beazley
BEST RATING: Beazley Syndicate – Lloyd's Syndicate 623 is rated A (Excellent).
AVAILABILITY: Coverage is available through approved independent agents and brokers.
FOCUS: Today, social engineering is one of the greatest security threats facing organizations. This risk differs from traditional hacking in that social engineering attacks don’t typically involve the exploitation of systems. Instead, many incidents provide fraudsters with authorized access to confidential information.
The success of social engineering practices hinges on an attacker’s ability to manipulate victims into performing actions or providing confidential information. Considered modern-day con artists, social engineers attempt to access computer networks or data by relying on the natural helpfulness of people.
Common scams involve sending an email with a phony link to an individual’s bank—and tricking them into entering their bank ID and password. Scammers may also send a link to a phony fax that does extensive damage to the recipient’s computer, or emails to bank employees that infect workstations and allow hackers to make cash transfers, operate ATMs remotely and change account information.
Social engineering attacks continue to grow in sophistication and frequency, costing companies millions of dollars—and putting client data and confidentiality at extreme risk. Insurance coverage to address these risks has failed to keep pace with extreme attacks, typically only providing protection between $100,000 and $250,000.
To address this gap in coverage, Beazley’s new policy provides coverage up to $5 million in excess of underlying coverage of at least $250,000. The policy expands the protection available to firms that fall victim to impersonation scams by fraudsters who convince employees to wire funds to external accounts.
“Brokers and insureds have been requesting higher limits for social engineering risks. As a result, we have developed a very simple excess form to meet their needs,” explains Bill Jennings, Beazley crime underwriter. “Our state-of-the-art coverage and broad terms bring clarity and peace of mind to clients seeking crime and fidelity insurance.”
UNDERWRITING: Coverage is available on a surplus lines basis only. Coverage can follow the terms of another crime insurer’s primary cover, and can be used to boost the social engineering cover currently available under Beazley’s cyber policy, Breach Response. Beazley requires clients to complete the fraudulent instruction questionnaire or equivalent social engineering application to complete the underwriting process.
MINIMUM PREMIUM: $2,500.
TARGET: This product is tailored to health care, technology, media and business services, manufacturers, distributors, and retailers with more than $50 million in revenue. It also targets financial institutions, including banks, insurance companies, investment bankers, stockbrokers, mutual funds, and investment management firms with more than $500 million in assets.
COVERAGE TERRITORY: Available in all 50 U.S. states.
CONTACT: Bill Jennings, crime underwriter, financial fidelity/commercial crime, Beazley; 1270 Avenue of the Americas, New York, NY 10020.
Ronimarie Acord is an IA contributor.
