What Insurance Covers Social Engineering Fraud?

Social engineering fraud usually involves a criminal impersonating a supplier, executive, customer, or other trusted party to persuade an employee to transfer funds or change payment details. Chubb describes its own social-engineering protection as an endorsement to its crime policy and identifies vendor, executive, and client impersonation as examples. That is a carrier-specific description, not a statement that every crime policy has the same grant.

A base funds-transfer provision may focus on an instruction sent to a bank without the insured’s knowledge or consent. A payment an employee knowingly initiates after being tricked may not fit that definition. Some insurers offer a separate endorsement to address that gap, and it may impose verification procedures, a waiting period, a sublimit, or a retention.

Read the actual endorsement for covered impersonation, which employees can authorize transfers, required callback or dual-approval controls, and whether a supplier’s compromised email is included. Confirm whether the limit is per event or shared with other crime losses, and document how to report a suspected loss.