What is social engineering insurance coverage?

Social engineering insurance coverage is a type of insurance policy that provides protection against financial losses resulting from fraudulent schemes or scams that involve social engineering tactics. Social engineering tactics are designed to trick people into giving away sensitive information or transferring money to fraudulent accounts.

These types of schemes often involve impersonating a trusted party, such as a company executive, in order to gain access to sensitive information or convince employees to transfer funds to a fraudulent account. Social engineering insurance coverage can provide financial protection for businesses that fall victim to these types of scams.

The coverage typically includes reimbursement for losses resulting from fraudulent wire transfers, phone scams, and phishing attacks. Some policies may also provide coverage for reputational damage and costs associated with investigating and responding to a social engineering attack.

It is important to note that social engineering insurance coverage is not typically included in standard commercial insurance policies and must be purchased as a separate endorsement or policy.