Use dotted terms for definitions. You can also browse the glossary.
Before you decide
- First-party response and third-party liability are different coverage questions.
- Vendor-hosted data still belongs in the exposure review.
- A fraudulent transfer may require distinct crime or social-engineering wording.
Map the operation
List leasing applications, identity records, rent systems, email, accounting, cloud storage and the vendors holding business data. Record who has access and who can authorize payments. Share only necessary underwriting information through a suitable secure channel.
FTC guidance distinguishes first-party cyber response from third-party liability. Its checklist is a set of questions, not a guarantee that a product includes every item. Ask about response vendors, defense, notification, interruption and data recovery under the actual proposal.
Use a cyber and crime matrix
| Event | Review |
|---|---|
| Tenant data exposure | Response, notification, liability and vendor conditions |
| Leasing platform unavailable | Dependent service and interruption trigger/waiting period |
| Email instruction changes a payment | Social engineering, funds transfer and authorization definitions |
| Employee takes client money | Crime coverage and employee/property definitions |
Worked scenario: fraudulent vendor instructions
An email in a familiar thread asks the bookkeeper to send funds to a new account. The FBI recommends independently verifying requests and account changes, including using a number obtained independently of the suspect message. Maintain a callback and approval record.
Ask the partner to apply that scenario to the proposed wording. A transfer willingly authorized after deception can raise different questions from unauthorized access. Do not assume ordinary property theft or generic cyber cover pays it.
Prepare an incident response card
Record internal escalation, bank contacts, insurer reporting channels and approved response providers. If a transfer is suspected fraudulent, contact the financial institution immediately and follow appropriate reporting procedures. Preserve messages and logs securely.
Keep multifactor authentication, access removal, backups and payment controls as operational duties. Answer security questions accurately; retain the evidence supporting the application and recheck controls when staff or vendors change.
Sources & scope
- Federal Trade Commission: Cyber insurance
First-party and third-party cyber questions; a checklist is not proof that a quoted policy includes each item.
- Federal Bureau of Investigation: Business email compromise
Payment verification and incident-response guidance; not a statement that insurance reimburses a fraudulent transfer.
- Travelers: Fidelity and crime insurance
Examples of distinct insuring agreements for dishonesty and fraud. Definitions and reporting triggers vary.
Sources checked October 24, 2026. General descriptions do not replace the policy, endorsements, declarations or an insurer’s coverage determination. Examples are hypothetical unless explicitly identified otherwise.
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