Enhanced Cyber Crime Coverage Endorsement
This Endorsement Changes the Policy. Please Read It Carefully.
This endorsement modifies insurance provided under the following:
CyberGuard Policy
In consideration of the premium charged for the Policy, it is hereby understood and agreed that:
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SECTION I – 1st PARTY INSURING AGREEMENTS is amended to add:
Cyber Crime
We will indemnify the Insured Organization for Cyber Crime Loss incurred as a direct result of a Cyber Crime Incident first discovered by the Insured Organization during the Policy Period.
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With respect to the Cyber Crime insuring agreement only, SECTION III – DEFINITIONS, FF. Incident is amended to add a Cyber Crime Incident.
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With respect tothe Cyber Crime insuring agreement only, SECTION III – DEFINITIONS, JJ. Loss is amended to add Cyber Crime Loss.
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The following is added to SECTION III – DEFINITIONS:
Cyber Crime Incident
Any of the following events:
- Fraudulent Data Entry;
- Fraudulent Instruction;
- Fraudulent Transfer;
- Invoice Manipulation; or
- Telecommunications Fraud.
Cyber Crime Loss
Direct financial loss that the Insured Organization sustains because of a Cyber Crime Incident.
Fraudulent Data Entry
The theft of the Insured Organization's Funds resulting directly from any intentional, unauthorized, and fraudulent entry of or change to Data by an unauthorized third-party.
Fraudulent Instruction
The transfer, payment, or delivery of Funds by an Insured as a direct result of fraudulent written, electronic, telegraphic, cable, teletype, or telephone instructions provided by a third party, that is intended to mislead an Insured through the misrepresentation of a material fact which is relied upon in good faith by such Insured.
Fraudulent Transfer
The transfer of Funds by a financial institution in response to fraudulent written, electronic, telegraphic, cable, teletype, or telephone instructions received by that financial institution that purport to have been submitted by an Insured but were submitted by a third party and instruct the financial institution to electronically transfer Funds from or otherwise debit the Insured Organization's account to that third-party without the Insured's knowledge or consent; provided that:
- The Insured Organization first demands that the involved financial institution return the Funds to the Insured Organization and the financial institution refuses to return the Funds to the Insured Organization ; and
- The Insured Organization agrees to return any amounts We reimburse the Insured Organization for the loss of Funds in the event the Insured Organization subsequently recovers those Funds from the financial institution or any other party.
Invoice Manipulation
Those Funds that were to be paid to the Insured Organization by a client or customer but that were paid to a third party by the client or customer in reliance on a fraudulent or altered invoice the Insured Organization's client received that purported to have been submitted by an Insured but was submitted by someone other than an Insured as a result of a Cyber Security Incident or Privacy Breach Incident; provided that:
- The Insured Organization first demands that the involved client or customer return the Funds to the Insured Organization and the client or customer refuses to return the Funds to Insured Organization; and
- The Insured Organization agrees to return any amounts We reimburse the Insured Organization for the loss of Funds in the event the Insured Organization subsequently recovers those Funds from the client or customer, or any other party.
Telecommunications Fraud
An obligation to pay a telephone service provider with which the Insured Organization has a written contract to provide the Insured Organization with telephone services that is the result of an unauthorized third party gaining access to and using the Insured Organization's telephone systems in an unauthorized manner; provided that the telephone systems that were accessed and used were either owned or leased by the Insured Organization and under the Insured Organization's direct operational control.
Funds
A medium of exchange in current use authorized or adopted by a domestic or foreign government as a part of its currency (including Cryptocurrency).
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With respect to Cyber Crime only, SECTION IV – EXCLUSIONS, X. Theft of Funds is deleted in its entirety.
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SECTION IV – EXCLUSIONS is amended to include the following:
With respect to the Cyber Crime insuring agreementonly, this Policy does not apply to any Loss based upon, arising out of, directly or indirectly resulting from, or in any way connected with the following:
- any actual or alleged fraudulent, dishonest, or criminal act or omission by, or involving, any natural person Insured ;
- any Cyber Crime Loss sustained by one Insured to the advantage of any other Insured;
- any costs to prove or establish the occurrence of a Cyber Crime Incident or to prove or establish the amount of Cyber Crime Loss;
- any liability to any third party;
- any legal costs or legal expenses;
- any loss the Insured Organization recovers from a person or entity (other than Us under this Policy ) that would otherwise be covered as Cyber Crime Loss;
- any consequential or indirect loss of any kind, including loss of income, dividends, or interest not realized by the Insured Organization or an Insured or any other individual or entity;
- any theft involving the use of forcible and violent means;
- the theft, disappearance, destruction of, unauthorized access to, or unauthorized use of confidential information, including a PIN or security code;
- accounting or arithmetical errors or omissions, or the failure, malfunction, inadequacy, or illegitimacy of any product or service; or
- any actual or alleged use of or failure to process credit, debit, charge, access, convenience, customer identification, electronic benefit transfers, mobile payments, or other cards or accounts.
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Subject to parts A. and B. of SECTION V – LIMITS OF LIABILITY AND RETENTIONS, the Individual Limit of Liability set forth in the Declarations for Cyber Crime is the most We will pay for all Cyber Crime Loss under the Cyber Crime insuring agreement.