Computer Crime Insurance

Imagine a wild pack of computers with arms and legs; they start bashing your car with their cold, metal hands. Your insurance company might ask you if you have “Computer Crime Insurance.”

And after you’ve awaken from this Ambien-fueled dream, you’ll realize that Computer Crime Insurance...is for a totally different thing.

Computer crime insurance is an insurance policy that insures the policyholder from the theft of money, securities, and other property via computer. It may also cover theft of information and computer vandalism.

Most large insurance carriers offer this coverage. Cyber hacking and all kinds of other crimes in the same vein have become a big deal, especially with so much commerce now happening electronically. The famous Facebook “data breach” of 2018 was a biggie, as the company was discovered to have been using its data on customers for a variety of politically motivated gains held by its founder and management.

Insurance claims in this arena are extremely risky for the insurance company to underwrite, because the scope and scale of damages are… high. And unproven, unadjudicated, and vague. But for the insurance companies who underwrite expensive policies to companies who don't end up filing claims, the business should be highly lucrative.

The jury is still out. Literally.