One of the requirements of writing a blog like this, is the ability to admit that sometimes you do not know something. I have been a small-business owner for over 26 years, and during that time I have not heard until now about the availability of the particular type of Insurance that I am about to describe to you.
"Most unsuspecting owners do not own fraud insurance, and if they do, it includes only crimes like employee embezzlement." However, small-business owners who have been victimized by CyberFraud know what many of us without that experience do not know: There are "riders" available "covering cybercrime and fraudulent bank transfers." They are "rare," but they are at least available if you search for them. Pamela Ryckman, "Owners May Not Be Covered When Hackers Wipe Out a Business Bank Account" p. B11, col. 1 (New York Times Nat'l ed., "Small Business" Section, Thursday, June 14, 2012).
This is an issue for businesses generally because Federal Deposit Insurance does not cover business accounts, only individual accounts. It is particularly an issue for small businesses because, unlike large businesses, small-business owners generally do not have the same kind of firewalls or "IT Departments" guarding against CyberFraud.
If you or your clients make your living as sole practitioners or in small businesses, you can contact an agent or broker for information about this type of Coverage. Based on past experience, be clear that you are only asking about this Coverage, and not applying for it. If you are marked as an applicant when you did not intend to apply, and if Coverage is declined, you may have to report that declination of Coverage for years to come if you ever do apply for it.
Please Read The Disclaimer.
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