Case study – Citadel Commerce Corp.
Our client is one of the most recognized payment processing brands in the industry, providing fully integrated e-commerce payment solutions and authentication services to many of the leading internet merchants.
When someone pays for something on the web, the funds for payment are transferred through our client's payment processing system from the customer's bank account to the merchant's bank account. As you would expect our client has superior risk management systems, so the chance of a successful fraud attack is extremely unlikely. Unfortunately, cyber crime is incredibly sophisticated and increasingly common, and therefore adequate insurance is needed to protect our client from catastrophic attack. The right insurance is also a requirement of the company's banking partners.
Even the broadest insurance policies available come with a major gap in coverage. Typically crime insurance (employee theft coverage) covers loss of money and securities belonging to the insured, although they can also be extended to include customers' property. However, the loss must be caused by an employee of the insured or a third party acting in collusion with an employee. Despite the reassurance offered by a general crime policy, the company would not be covered for claims that arose from a pure hacking attack from outside.
Axis Insurance Managers Inc. was able to find a unique solution to fill this coverage gap while allowing our client to honour its contractual commitments. Axis has longstanding and productive relationships with Lloyds of London and was able to work with the innovative underwriters to deliver protection for the company from these very specific cyber risks.
Clive Bird, Axis Insurance Managers Inc. said: “Sometimes you have to work extra hard to understand your client's business. We review their contractual agreements and get to grips with the processes that run their company. By getting to know their business inside out you can think all the way through how risks can be impacted by standard policy language and find the fault lines. That's the advice our clients are paying for – and that's where we put our expertise into practice.”
Our client’s managing director said: “My colleagues and I have worked with Axis for over 15 years and our company has stayed with them for all our insurance coverage. They make a great effort to understand our business as it evolves and changes over time to ensure that we have the best insurance for our current needs. Throughout our long relationship he has consistently demonstrated his skill and most particularly given us continuous support and high quality service. I never have any concerns that we have the right insurance at the right price and I unreservedly recommend Axis Insurance to anyone.”