Does Cyber Insurance Cover Wire Fraud?
Cyber insurance may cover stolen wire funds only when the policy includes applicable cyber crime or funds-transfer fraud coverage; liability coverage alone may not repay the loss.
AIG’s specimen wording treats covered loss and liability sections separately, while Chubb lists cyber crime protections such as funds-transfer fraud by endorsement. Check for spoofed instructions, compromised accounts, and employee-authorized transfers.
Check whether the policy covers a transfer initiated through a compromised account, a spoofed instruction, or an employee’s authorized action. Review any verification procedure, time-to-report condition, sublimit, retention, and exclusion for voluntary transfers. Compare the cyber form with the crime policy and read their other-insurance terms; do not assume both limits stack. After a suspected transfer, follow notice requirements and immediately contact the bank.
