Does Cyber Insurance Cover Employee Mistakes?

An employee may click a phishing link, send sensitive information to the wrong recipient, or misconfigure access. Those acts can result in a data breach or network incident, and FTC guidance describes first-party response costs that may follow covered cyber events. The policy’s treatment may differ when the employee acted accidentally, knowingly, or fraudulently. A crime loss involving money may also require a separate grant from the data-response coverage.

Check definitions of employee, security event, privacy event, and protected information. Review exclusions for dishonest or intentional acts, any innocent-insured protection, and the specific section covering funds transfers. Confirm the application accurately described security controls and staff access. After an event, follow notice and consent conditions before hiring forensic or legal vendors, and preserve logs and communications that help establish what happened.