What it does
The 06 22 forms include Insuring Agreement 7, Fraudulent Impersonation, which pays when the insured, acting in good faith, transfers money or securities on a transfer instruction or change-of-account request that an impostor sent in the name of an authorized person, client or vendor. CR 04 18 is ISO's optional extended version of that coverage; use the endorsement schedule and wording to see what it adds to the base agreement.
Who needs it
Any business that pays vendors or moves money electronically: contractors, distributors, manufacturers, professional firms, property managers, nonprofits and title or escrow businesses, all of which are frequent targets of business email compromise.
How it fits the policy
Optional insuring agreements like this one are not part of the base forms. When attached, the agreement and its limit and deductible are shown in the declarations under the insuring agreements added by endorsement, and the agreement is subject to the base form's general exclusions and conditions, including the discovery or loss sustained trigger of the form it is attached to. ISO's forms index lists the current edition for 52 jurisdictions.
Quoting and selling notes
- Ask who can approve payments and changes to vendor bank details, whether call-back verification is used, and whether dual authorization applies above a threshold.
- The base condition requires a reasonable effort to authenticate, not through email, and contemporaneous documentation before transferring property.
- Sublimits are common; quote higher limits where wire volume is high.
