In our prior post (see here), we noted that investment related firms are exposed to cyber risks, and to regulatory risks related to cyber exposure, and should carry Cyber Risk Insurance. If available, the Cyber Risk Insurance should include coverage for loss of money, including social engineering fraud (also called Business Email Compromise, BEC or email piracy). See our prior posts here and here on social engineering fraud.
Recently, an employee at an investment management company was tricked into wiring $495,000 to china by a fake email (see here and here). Good risk management can prevent an unfortunate incident, and our recommendations for avoiding cyber crime losses may help – see our prior posts here and here.
Cyber Risk Insurance is an essential coverage for businesses that have valuable electronic assets, such as data and money, that criminals might want to steal. Investment firms are particularly exposed to both the financial and regulatory risk. Cyber Risk Insurance coverages vary widely, but comprehensive policies are available to cover loss of money and regulatory exposures.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at hard to place professional liability insurance accounts, including Cyber Risk Insurance and Technology E&O.