What Insurance Covers Wire Fraud?
A crime policy may cover a fraudulent wire transfer if the selected funds-transfer or computer-fraud grant fits how the payment was initiated. A cyber label alone does not establish reimbursement for stolen money.
Commercial crime insurance is a policy to inspect when a fraudster causes money to leave the company by wire. A Travelers specimen includes separate funds-transfer-fraud and computer-fraud agreements. Its funds-transfer wording addresses specified instructions that fraudulently cause money or securities to move from an insured transfer account. A different method of attack, or a payment the company knowingly authorized after being deceived, may fit a different definition or endorsement. The sample is not the wording of every insurer’s form.
The bank’s recall or fraud-resolution process is separate from an insurance claim. Contact the bank promptly, preserve the original payment instructions and communications, and give notice as the policy requires. Do not wait for the bank’s investigation before checking insurer deadlines.
Compare the definitions of transfer account, funds-transfer fraud, and computer fraud; determine whether wire, ACH, and international payments are included; and review any voluntary-parting exclusion, verification warranties, sublimits, retention, and proof requirements. Ask the insurer to address the exact method used.
Related Coverage
Sources
- Crime Terms and Conditions. The Travelers Companies, Inc.; Insuring Agreements A.1 Employee Theft, A.3 Employee Theft of Client Property, B Forgery or Alteration, F Computer Fraud, G Funds Transfer Fraud, PDF pp.1–5; definitions E and AA, pp.7 and 10; exclusions IV.C–H, pp.14–15. Accessed 2026-09-25.
