„Once your reputation’s done, you can live a life of fun.“ – Wherever this proverb, by the way attributed to Wilhelm Busch, may apply, in one place it certainly has no right: in today’s market. Trust, honesty, reliability, credibility and transparency are indispensable core values for every successful company today.
Sometimes the most loyal people get into an exceptional situation where they see no other way out but to abuse your company in any manner. Perhaps it is that since-long-time-employed accountant who has fallen victim to gambling addiction and who can invent nothing better than transferring customer funds to his account in order to pay his debts. Or an employee is torn into pieces so severely by an expensive divorce that all sense of reason is lost. Who would want to look inside a person so deeply?
The impact of its consequent fidelity damage is often serious: loss of employees, damage to reputation, loss of customers. And not to forget: considerable financial damage up to threat to the company’s existence, for example because
- urgently needed liquidity is lost,
- production of suit and loss assessment often result in high additional costs,
- the equity ratio and balance sheet figures deteriorate making further financing difficult or significantly more expensive,
- the corporate planning during balance sheet manipulations is based on incorrect data.
Crime (fidelity) insurance is a classic line of credit insurance brokers. It also offers comprehensive protection in so-called „fake president“ cases, which are now „generally“ excluded at some international providers.
What is covered by the crime (fidelity) insurance?
The (crime) fidelity insurance helps in case of deliberate and fraudulent actions by trusted persons, such as
- management,
- employees, as well as
- from external service providers.
It offers insurance cover against economic and computer crimes by trusted persons and against Internet crime by third parties (hacker damage, even without the intent of financial gain!), as well as the derived economic consequences. The co-insurance of damages already caused before the insurance start is possible. Any former employees remain co-insured for the insurance time period.
Cyber insurance
As a supplement to a crime (fidelity) insurance (CI), that among other options covers „credit to employees“ (in contrast to credit to customers in credit insurance), cyber insurance modules are available as part of CI – at low premium rates with high coverage amounts.
Examples of cyber damages are as follows:
- The computer gets encrypted because your seasonal trainee has accidentally clicked on an infected email attachment.
- A hacker gains access to your computer system, finds out business secrets and blackmails you afterwards.
- You forget a flash drive with sensitive information in the restaurant. You are legally obliged to inform ALL concerned.
Cyber insurance solutions offer crisis plans, crisis management and damage settlement, such as reimbursement of arising financial losses and own damages.
Insurance against fraudulent orders
The protection against fraudulent orders can be again alternatively covered with an internet and financial crime policy in combination with credit insurance, in case if fraudsters use the identity of real operators to steal goods and services. Even if you have a credit limit on the actual risk, the existing credit insurance is of no use. The reason: since the actual customer, whose identity has been misused, is not the actual recipient of the delivery or service, no valid contract has taken place between the company and its insurable customer.
You should conclude a cyber liability insurance in addition to a fidelity insurance/crime/cyber policy. Some very high damages have occurred here in the recent years. The insurance industry’s experience with this line is still quite new.
Cyber liability insurance
The cyber liability insurance offers, among all, insurance cover for claims invoked against insured persons or an external service provider (e.g., in case of server outsourcing!) in relation to a data protection violation, a confidentiality agreement, a network security violation or, for example, because of an unlawful communication.
Furthermore, this insurance reimburses various own damages (business interruption damages) caused by the unavailability (also partial) of the computer system due to a cyber attack, incorrect operation or unforeseen technical problems of the computer system.
Questions on crime (fidelity) insurance
Simply fill in questions in German, if you are interested in an offer for crime (fidelity) insurance (please fill in completely so that we can invite the best offers for you). If you need an English version of the questionnaire, please, send a request to gt@cib-kreditversicherung.at.