Cyber vs Crime Insurance: Do You Know the Difference?

Cyber vs Crime Insurance: Do You Know the Difference?

In the last several years, cyber insurance has grown in importance in terms of commercial insurance coverage. Crime and cyber-crime attacks are becoming more and more common. Hence, knowing the difference between coverages is imperative. No matter your industry, protecting your business has to come first.

What Does Crime Insurance Cover?

Crime insurance coverage covers the loss of funds due to employee dishonesty, forgery, computer fraud, extortion and many other criminal acts. For instance, if an unknown party impersonates a bank and convinces a business’s funds transfer administrator to activate a link to a fraudulent bank and to transfer funds to the impersonator, this is a claim for crime insurance.

What Does Cyber Insurance Cover?

Cyber insurance, on the other hand, covers economic damages due to the failure of network security or indirect losses. This can happen if an employee accidentally downloads malware that then proceeds to steal financial or personal data. In this case, cyber risk management is useful in ensuring that employees won’t make mistakes that put the company at risk.

Cyber crime insurance coverage and crime insurance coverage are both crucial coverages for every business. Nowadays, cyber threats and cyber-crime are among some of the biggest risks that businesses face. It’s crucial to have the right amount of coverage.

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