Social engineering fraud coverage in admitted P&C products

Fraudulent Transfer Protection - Social Engineering Insuring Agreement

Loss resulting directly from the Insured having, transferred, paid or delivered Money or Securities as a direct result of a Social Engineering Fraud Instructions.

Social Engineering Fraud Instruction means any instruction which intentionally misleads an Employee, believing it to be genuine, for the purpose of directing or transferring the Money or Securities that reasonably appears, to have originated from:
(a) such Customer;
(b) an Employee acting on instructions of such Customer;
(c) another financial institution acting on behalf of such Customer with authority to make such instructions;
(d) a person purporting to be a director, officer, partner, member or sole proprietor of the Insured or an Employee by an individual acting in collusion with such person;
(e) a person purporting to be an employee of a Vendor that has a pre-existing arrangement or written agreement to provide goods or services to the Insured.

Selected excerpt from this form.

1. 01Covers direct loss from transferring, paying, or delivering Money or Securities.
2. 02Requires misleading instructions that an employee believes to be genuine.
3. 03Lists apparent sources, including customers, financial institutions, insured leadership, employees, and vendors.