What Is Computer Crime Insurance?

What Is Computer Crime Insurance?

Computer crime insurance covers the misuse of company equipment by employees, while cybercrime insurance deals with a wider range of external hacking activities. Blanket bond coverage may protect against both internal and external threats.


One type of insurance that safeguards businesses against losses resulting from crimes committed by their employees through the misuse of their computers is computer crime insurance. It is one of many insurance policies available to cover various crimes, such as identity theft, credit card fraud, cyber extortion, fraudulent money transfers, and cryptocurrency theft from electronic wallets.

Business-oriented computer crime insurance policies primarily address the risks of electronic theft of money or securities, unauthorized transfer of proprietary information by employees or contractors, and even acts of vandalism.

Computer Crime vs. Cybercrime Insurance

Computer crime and cybercrime are distinct concepts from the perspective of insurance companies. Cybercrime refers to business losses resulting from external individuals misappropriating or misusing confidential information, typically through a security breach that often involves the unintentional involvement of company employees.

On the other hand, computer crime insurance specifically addresses financial losses caused by employee dishonesty or error. This coverage aims to protect businesses against losses resulting from the actions of their own employees.

Computer Crime Insurance Coverage

The Computer Fraud and Abuse Act is a law that prohibits various computer-related crimes, including unauthorized access, fraud, and intentional damage caused by viruses or malicious code. Computer crime insurance primarily focuses on the transfer of information or property within a company by its employees or contractors for criminal purposes.

The level of risk associated with computer crimes can be difficult to determine, as employees may find ways to bypass security measures. In Australia, blanket bond coverage is referred to as "employee dishonesty coverage." Computer crime insurance policies may need to specify the definition of computers and the activities that could be considered criminal in today's digital landscape.

Protection Against Internal Threats

Companies can protect themselves from computer crimes committed by their own employees through blanket bond coverage. This type of coverage, commonly carried out by brokerages and financial institutions, safeguards the company against damages caused by employees or contractors. Blanket bond coverage, also known as "employee dishonesty insurance" in Australia, addresses a wide range of internal malfeasance and covers legal costs associated with such incidents.


Computer crime insurance can offer important protection for businesses against losses resulting from employee misconduct involving computers. While cybercrime insurance covers external hacking activities, computer crime insurance focuses specifically on internal threats. As technology continues to evolve, businesses must stay informed and protected against digital risks.

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Hexn operates under HEXN (CZ) s.r.o. and HEXN Markets LLC. HEXN (CZ) s.r.o. is incorporated in the Czech Republic with the company number 19300662, registered office at Cimburkova 916/8, Žižkov, Praha. HEXN (CZ) s.r.o. is registered as a virtual assets service provider (VASP). HEXN Markets LLC is incorporated in St. Vincent and Grenadines with the company number 2212 LLC 2022, registered office at Beachmont Business Centre, 379, Kingstown, Saint Vincent and the Grenadines