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Financial institutions to get insurance cover for social engineering

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Willis Towers Watson P.L.C. on Wednesday said it is introducing a product that provides financial institutions with coverage for social engineering losses.

Willis said its CyFi, or “cyber insurance and fidelity,” policy addresses coverage gaps between cyber insurance policies and fidelity bonds. Currently, neither cyber insurance policies nor fidelity policies “singularly cover the scope of losses associated with social engineering claims, and thus, critical areas of exposure are not adequately protected,” Willis said in a statement.

Willis said CyFi bridges this gap by providing institutions with additional capacity that sits above an insurance program’s existing attachment points for individual primary cyber and fidelity placements.

It said the product is also intended to fill gaps in coverage that exist on a primary basis, such as losses arising from social engineering; theft of confidential information; a narrow definition of computer systems; mechanical failures or errors in program designs; and cyber terrorism.

There are up to $100 million in limits available under the coverage, according to a Willis Towers Watson spokeswoman.

“This is a strategic way for us to help financial institutions ensure seamless cyber risk protection across their entire insurance program,” Anthony Dagostino, New York-based executive vice president and cyber/errors and omissions practice leader in Willis Towers Watson’s FINEX practice, said in a statement. “Because CyFi bridges coverage gaps, it enhances an insured’s primary placement while also fitting neatly over existing programs, providing an effective risk transfer solution.”