46% of companies think cyber insurance adequately protects against digital fraud. This is not the case. A fraud insurance is additional to cyber insurance, credit insurance and corporate liability insurance. Stealing passwords or redirecting to other websites to commit fraud, for example, falls under fraud insurance. While, for example, liability damage if data is stolen falls under cyber insurance. In general, you can say that cyber insurance protects against business damage caused by a cyber attack and against liability for damages to third parties. While fraud insurance covers the financial consequences of fraud by employees as well as external fraud.
What do you insure with Allianz-Trade's fraud insurance?
With Allianz Trade's fraud insurance, you protect your company against financial loss due to internal and external fraud for:
- Financial losses resulting from employees' criminal activities. These include theft, breach of trust, fraud, embezzlement or property damage.
- Fraud damage due to false identity, as in the case of 'CEO fraud' or the diversion of funds by third parties posing as one of your business partners.
- Damage caused by third parties through certain forms of embezzlement, theft or fraud.
- Damage caused by stealing trade secrets (you can co-insure this).
- Costs resulting from the fraud, such as data recovery and legal proceedings.
Frequently asked questions about taking out fraud insurance
I know who all my employees are and know them well, why shouldn't I trust them?
Many business owners trust their employees blindly, and usually rightly so. Yet figures show that infidelity, fraud and other criminal offences cause millions in damages every year. Simply because the company has trusted the wrong person. In many cases, an employee commits fraud because of financial difficulties, a gambling addiction or just because they can. So make sure you take the right preventive measures and protect your company from the financial risks.
We have secured our It system to the highest standard. Who can crack that?
Cybercrime continues to evolve, so cybercriminals are always finding new ways to hack into business systems. Don't forget external attacks, which are becoming increasingly sophisticated. For example, did you know that there is special software that criminals use to mimic the voices of executives or customers when making phone calls? This makes it even harder to spot scams and protect yourself from them. To avoid major consequences for your business, it may be smart to look for protection for this.
Should someone steal something, we are perfectly capable of bearing those costs ourselves, right?
Often, the problem is not the stolen office equipment. You can usually bear that damage yourself. It only becomes a different story with fraud where criminals have embezzled many millions of euros. Such fraud cases usually take years. And the most annoying thing about this is that when a perpetrator is convicted, there is nothing more to get from him because the money has run out. This has major consequences for a company. Fraud that you discover after you have taken out fraud insurance, but occurred before that, is also covered under fraud insurance.
Want to know more?
Want to know more about how to protect your business against internal and external fraud? Then contact one of our specialists.
