Cyber Insurance

Following the sale of two properties, an insured property developer was required to make a payment of $400,000 to their property consultant.

On the day payment was due, the property developer received an email from the consultant advising that their banking details had changed. The developer requested that the change be sent to them in writing on the consultant’s letterhead, which they received, including the signature of the consultancy’s director.

Later, the consultant chased the property developer for payment. It was then discovered that the email and letter were fraudulent. The property developer contacted their bank to stop payment, but the money had already been withdrawn and transferred overseas.

The property developer made a claim on their Cyber Insurance policy, which included optional Social Engineering cover. An IT forensic consultant appointed by the insurer identified that a hacker had infiltrated the consultant’s system and intercepted messages between the property developer and the consultancy.

The insurer paid $250,000 to reimburse the property developer (capped at the Social Engineering sub-limit of $250,000).

The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not BizCover for Brokers.