What it does
BP 05 47 adds two crime-style coverages to the BOP:
- Computer Fraud – loss of and loss from damage to money, securities and other property resulting directly from the use of any computer to fraudulently cause a transfer of that property from inside the premises or banking premises to a person or place outside those premises.
- Funds Transfer Fraud – loss of money and securities resulting directly from a fraudulent instruction directing a financial institution to transfer, pay or deliver money and securities from the insured's transfer account.
Who needs it
Small businesses that pay vendors and payroll by ACH or wire. The BOP's employee dishonesty and money and securities optional coverages do not address outside hackers or fraudulent bank instructions.
Quoting and selling notes
- Ask about dual authorization for wires and callback procedures; carriers often ask.
- Explain that schemes in which an employee is tricked into sending money (social engineering) are a separate exposure; check whether the carrier offers it.
- New York has its own version (BP 07 99).
