What Insurance Covers Phishing Losses?
Cyber coverage may pay response costs after phishing, while crime coverage may address money stolen through a covered transfer or social-engineering grant.
A phishing message can lead to different losses: stolen credentials, system access, exposed data, an outage, or a payment sent to a criminal. FTC guidance describes possible cyber response costs; crime coverage may be needed for a fraudulent transfer, especially if an employee was deceived into authorizing it.
Ask which policy section covers each scenario and how it treats authorized payments, security controls, and vendor incidents. Keep the message and transfer records, and report suspected fraud promptly to your bank and insurer.
Coverage Guides Related to Business Insurance
Sources for This Answer
- 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.
- Cyber Insurance. Federal Trade Commission; First-Party Coverage; Third-Party Coverage; What Should Your Cyber Insurance Policy Cover. Accessed 2026-09-25.
- CyberEdge specimen policy. AIG; Security and Privacy Coverage Section, PDF pp.11–18, especially exclusions p.18; Cyber Extortion Coverage Section, pp.29–31. Accessed 2026-09-25.