Does Cyber Insurance Cover Wire Fraud?
Cyber insurance may cover stolen wire funds only when the policy includes applicable cyber crime or funds-transfer fraud coverage; liability coverage alone may not repay the loss.
AIG’s specimen wording treats covered loss and liability sections separately, while Chubb lists cyber crime protections such as funds-transfer fraud by endorsement. Check for spoofed instructions, compromised accounts, and employee-authorized transfers.
Check whether the policy covers a transfer initiated through a compromised account, a spoofed instruction, or an employee’s authorized action. Review any verification procedure, time-to-report condition, sublimit, retention, and exclusion for voluntary transfers. Compare the cyber form with the crime policy and read their other-insurance terms; do not assume both limits stack. After a suspected transfer, follow notice requirements and immediately contact the bank.
Coverage Guides Related to Cyber Insurance
Which Providers List Coverage for Cyber Insurance?
Sources for Cyber Insurance Answers
- CyberEdge specimen policy. AIG; General Terms §§4–6, PDF pp.3–6; Security and Privacy §§1–3, PDF pp.11, 14–18; Event Management §§1–2, PDF pp.19–20. Accessed 2026-09-25.
- Business Email Compromise. Federal Bureau of Investigation; How BEC scams work; Report BEC. Accessed 2026-09-25.
- Cyber insurance coverage & products. Chubb; Cyber insurance coverage; First party coverage; Third-party liability coverage; Cyber crime (by endorsement); Products and services. Accessed 2026-09-25.
- Cyber insurance: a key part of a robust business strategy. Insurance Information Institute; What are the types of cyber insurance coverage?; What isn’t covered by cyber insurance?; Is cyber insurance affordable?; How much cybersecurity coverage do businesses need? Accessed 2026-09-25.