Back in April, before Brexit shifted the ground beneath our feet we at Churchill wrote a rather helpful blog on Cyber Insurance, which you can read here. However, whilst crimes other than cyber may not receive quite as much coverage, especially with scandals such as the Ashley Maddison affair providing such salacious fodder for the press. This isn’t the only insurance needed to protect small businesses. Whilst perhaps slightly less provocative – business crime insurance is undoubtedly of benefit to any small business. Crime insurance covers you for any losses due to:
Essentially, it means that in the face of negligent or fraudulent staff or external forces you are covered for any monetary losses, subject to policy terms and conditions.
And this sort of cover is never more important than today; as the rise of the machines present rich opportunity for potential theft. Not only is traditional theft still a constant threat, in 2014, 45,000 SMEs were burgled and 69,000 suffered from employee theft, (according to a recent governmental report,) but in recent year’s criminal activity has become far more nuanced. The whole team, at Churchill, along with our colleagues at companies up and down the country have seen a stark rise in “CEO theft.” This is, essentially, fraud where the thieves pretend to be either the boss of a company demanding payment, the IT services department of a bank requesting a test transfer, or a supplier asking for outstanding invoices to be paid into a new account.
CEO theft is particularly effective because the email doesn’t need to bypass (even the most advanced) malware. A simple, but effective approach, it has proven to be extremely successful and according to a recent report from the City of London Police’s National Fraud Intelligence Bureau (try saying that three times fast) over £32 million has been reported as lost as a result of CEO fraud, which is just a small drop in the ocean of the £1.43 billion that has been lost globally.
Image thanks to Norton.com
Easily done, this crime has hit a number of companies hard: one of the most famous scandals was Ubiquiti networks whom lost a massive $46.7 million due to an email phishing scam. Significantly, few cases have been brought to court as it is exceptionally difficult to find the culprits and bring them to trial. Especially with many being based in different countries to where the crime was committed.
At Churchill’s we work with all our clients to make sure they have the right cover to protect their business. With years of experience and relationships with a number of leading Insurers, we are able to ensure your insurance is uniquely made for your business and works to protect your most valuables assets.
If you have any questions about crime insurance please feel free to contact one of our expert team on 0208 511 1070.