Fraud Insurance
Coverage for:
- 1.-Fraud or dishonest act: committed by any employee (act committed with the intent to cause a loss or obtain financial benefit).
- 2.- Fraudulent Act committed by some other person outside the company:
- Signature forgery
- Fraudulent alteration of any promise to pay or check to pay a sum of money charged to the insured's account
- Fraudulent use of corporate cards
- Computational theft
- Transferring of funds (hacking)
- 3.- Legal fees:
- Legal expenses paid by the insured in the defense of any lawsuit, claim, trial or judicial proceeding are covered.
- 4.- Use of research specialists:
- The expenses of a specialist to investigate events giving rise to a loss are covered.
- 5.- Reconstitution costs:
- Costs of rewriting or modifying the insured's software programs or computer systems in cases where it is necessary to modify security codes.
- 6.- New entities:
- Any company, subsidiary or associate, newly incorporated or acquired by the insured is covered.
- 7.- Pre-loss consultant services:
- The insured is entitled to the services of a pre-loss consultant.
Why insure against scams?
- 77% of the companies have suffered at least one fraud, 46% was committed by employees.
- 2% of the companies that detected an illicit act, corrected the controls
- 86% of claims are discovered up to 6 months later
- 25% of frauds are greater than US$90,000
- 10% of frauds are higher than USD $450,000
- 85% are performed by middle or lower management personnel
