D&O Extension Products (Crime, EPL, PTL) Flashcards
What is Crime otherwise known as
Fidelity / Fidelity fraud
Common Crime Insurance clauses
- Internal Fraud
- External Fraud
- Client Coverage
- Social Engineering
What does Commercial Crime insurance usually cover
Theft of money, property & securities
What is Social Engineering in Crime?
Impersonating an employee of a company to commit theft
What type of businesses is crime most susceptible
Intangible businesses
List the common Exclusions in Crime
Loss after knowledge
Consequential loss (Losses because of theft)
Trading
IP theft
Major shareholder
Ransomeware
Fire, War & Terrorism
Data
Acquisition
Common Extensions in Crime
6 common extensions;
Defence costs
Criminal Damage costs
Data Loss costs
Contractual Penalties
Crisis costs
Tele-communications Fraud
What do insurers commonly look for when deciding to write Crime insurance?
Internal / External controls
Audits - In or Ext?
Social Engineering possibility
Recruitment process
Claims - Like all
What is the difference between Crime & Cyber
Crime - Direct, first party loss/theft of money, securities or other tangible property (DIRECT)
Cyber - Indirect losses or liability owed to third parties relating to electronic activities (INDIRECT)
Both = Electronic fund transfers by third party
PTL
Pension Trustees Liability
“D&O for trustees”
Types of pension schemes
Defined Benefit (DB) - Specific income when taken out
Defined Contribution (DC) - Influenced by factors such as contribution and fund performance
Hybrid - mix of both
Most are DC as DB is being phased out.
Define ‘trustee’ for PTL
- Acts separately from employer
- Hold assets in trust
- Ensure pension scheme is run properly / benefits are secure
