Does Cyber Insurance Cover Social Engineering?

Social engineering usually describes deception that persuades someone to take an action, such as changing payment instructions or sending money. That is different from a hacker directly breaking into a system, and policies may treat the losses differently. Chubb lists social-engineering fraud under cyber crime “by endorsement” for its products, which illustrates that this protection may be optional and company-specific.

Read the endorsement for the covered deception, required verification steps, who must receive the fraudulent instruction, and whether the event must involve a computer system. Check the limit, retention, coinsurance, time to report, and whether the insurer requires a bank recall attempt or law-enforcement report. Do not assume that a cyber liability limit automatically applies to money transferred by an employee.