LOS ANGELES--(BUSINESS WIRE)--Grandpoint Bank, which operates banks in California, Arizona and Washington, has introduced a new way for its business banking clients to protect themselves from financial losses due to funds transfer fraud and cyber deception through a first-of-its-kind cyber insurance group policy.
Grandpoint Bank created Grandpoint Insurance Services, Inc., a non-bank insurance agency affiliate, to develop the Client Cyber Crime Insurance product. The policy, offered to customers of Grandpoint Bank and its divisions, offers cyber crime loss coverage that is specifically geared to monetary losses. It was created as an affordable and easy alternative to individually underwritten, higher-priced commercial crime insurance policies.
The majority of businesses don’t realize that they have significantly more exposure for losses due to fraud than individual account holders, who are afforded certain regulatory protections. Businesses are often tricked into approving fraudulent transfers, notwithstanding internal controls to identify and prevent this kind of risk. According to the FBI, since 2013, over 17,000 businesses have lost an aggregate of more than $2.3 billion to one type of cyber crime alone, known as the business email scam.
Even as monetary losses due to cyber crime have skyrocketed in recent years, many traditional commercial crime policies specifically exclude losses arising from cyber deception.
“We are excited to make this new coverage available to our business clients,” said Petra Griffith, Director of Product Development for Grandpoint Bank. “The policy focuses on the kinds of coverage that directly address the key fraud risks that businesses face – losses to their bank accounts through cyber crime. Cyber crime is a major concern for businesses, especially since they are typically liable if cyber criminals steal funds from their business accounts. They often don’t have the appropriate insurance in place and are finding it more difficult to protect themselves in this ever evolving, increasingly sophisticated cyber crime environment.”
The Client Cyber Crime Insurance policy is available exclusively to business clients of Grandpoint and its divisions, Bank of Tucson, Regents Bank and The Biltmore Bank of Arizona, through Grandpoint Insurance Services, in partnership with LBW Insurance & Financial Services, Inc. The policy is underwritten by Hiscox Inc., on behalf of Underwriters at Lloyd’s, London, which is rated A by A.M. Best.
The Client Cyber Crime Insurance group policy coverage helps reimburse funds in business deposit accounts lost due to funds transfer fraud and cyber deception and is offered at premiums that represent substantial savings from individual policies currently available on the market. Any business that has a deposit account at Grandpoint Bank or its divisions is automatically eligible to enroll in the policy and select from a range of coverages with premiums that start at $30 per month.
“Educating and alerting our clients, and the broader business community, about established and emerging cyber crime trends is a commitment we’re passionate about,” said Griffith. “We’ve been working for over a year to create a more powerful solution to help clients protect their financial assets against attacks by cyber criminals.”
Grandpoint Bank is a full service commercial bank (Member FDIC), with total assets of approximately $3.2 billion. The Bank is a wholly owned subsidiary of Grandpoint Capital, Inc. The Bank is headquartered in downtown Los Angeles and operates 14 offices in five regions, in southern California, Arizona, and southern Washington. More information about the Bank is available at www.grandpointbank.com.
Grandpoint Insurance Services, Inc. is a licensed, non-bank affiliate of Grandpoint Bank, headquartered in downtown Los Angeles and licensed in Arizona (#1147037), California (#0K82434), Oregon (#106286670) and Washington (#918652). More information about Grandpoint Insurance Services and the Client Cyber Crime Insurance policy is available at www.grandpointinsurance.com.
LBW Insurance & Financial Services, Inc., is based in Valencia, Calif. LBW’s Tech Secure® Division, led by Howard Miller (CA License #0E53316), specializes in customized solutions to help protect against cyber crime risks. More information about the company is available at www.lbwinsurance.com.
Grandpoint Insurance Services’ Client Cyber Crime Insurance policy is:
|
NOT A DEPOSIT |
| |
NOT FDIC-INSURED |
||
|
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY |
| |
NOT GUARANTEED BY THE BANK |
Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). There are three main underwriting parts of the Group – Hiscox London Market, Hiscox UK and Europe and Hiscox International. Hiscox International includes operations in Bermuda, Guernsey and the USA. Hiscox Syndicates Ltd is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. The ability of syndicates at Lloyd's to do business in the USA and its territories is restricted as they are not US-based insurers. The publication and delivery of this information are not intended to be a solicitation by Lloyd’s for the purchase of insurance on any US risk. Hiscox Underwriting Limited and Hiscox ASM Limited are authorized and regulated by the Financial Conduct Authority.
Hiscox Inc. does business in California as Hiscox Insurance Agency in CA (License No.: 0F09668) and maintains an office at 101 California Street, Suite 1950, San Francisco, CA 94111.
Editor’s note: full suite of supporting materials available here. See below for content list.
Materials available on Box.com Grandpoint Insurance Services site:
- Fact Sheet
- Insurance product brochure
- Cyber security background Power Point presentation
- Interview resources
- Logos
