Conditions of Coverage
Social Engineering is the use of deception to manipulate individuals into divulging confidential or personal information that may be used for fraudulent purposes. Due to recent losses, the State Risk Fund's excess carrier, Starr Indemnity & Liability Company, has increased our self-insured retention (SIR), or deductible, from $500,000 to $1,000,000 and will not pay more than $250,000 per social engineering claim. Moreover, effective July 1, 2017, all covered entities are required to implement the following measures in order to have coverage for these losses:
1) A call-back, email, text or similar notification will be made by the State Entity’s financial institution/banking partner within 24 hours, notifying the Company of all electronic transfers of funds.
2) The State Entity will review the notification and contact its financial institution/banking partner within 24 hours of receipt, regarding any discrepancies and unrecognized transactions. This condition will apply within 24 hours following any weekend, holiday, or any other day where the State of Utah is officially closed for business.
3) The State Entity shall use antivirus software on all electronic devices, including desktops, portable computers, and, mobile devices, where available. If not available, the State Entity will use security solutions designed to guard against phishing, identity theft, fraudulent websites, data monitoring and remote disabling/wiping. The software, or similar security solutions, will be updated in accordance with the software provider’s recommendations.