If it involves a computer, then it must be cyber, right? Not exactly…

An event arising from a single business activity may trigger different insurance policies.

Example: an employee is driving a truck in order to deliver goods to a customer when the truck is involved in an accident with another vehicle.

  • Liability to a third party and the damage to the truck resulting from the accident are covered by an automobile policy.
  • Injuries to the driver are covered by workers compensation insurance.
  • Damage to inventory in the truck is covered by property (inland marine) insurance.

Cyber, or the use of computers and information technology, is a business activity.

Like any business activity, different types losses may arise and those losses may be covered by different types of insurance policies.

Intangible assetsTangible assets
First and third party coveragesFirst party coverage
• Data/information
• Information systems
• Money
• Securities
• Inventory
• Data breach
• Hacking
• Loss of use
• Theft

The primary difference between cyber insurance and Crime is that cyber insurance is primarily designed to provide coverage to intangible assets, like data, information and the operational integrity of information systems.

Crime insurance primarily protects an insured against the theft of money, securities or other tangible property.

Can I get a side of fries with that?

This is where things can get a bit confusing…

It is not unusual for cyber crime coverages to be available as an add-on (often by endorsement) to a cyber insurance policy.

This may include coverage for:

Social engineering loss (fraudulent instruction) involving loss of monies fraudulently induced by email or telephone messages, or other types of electronic crime (such as computer hacking) that results in a theft of funds.

These offerings are available for the convenience of the insured.

When considering adding cyber crime coverage to a cyber insurance policy, the insurance broker may want to consider if, and to what extent, coverage is already provided (or available) under the insured’s crime insurance policy.