Grandpoint Bank Makes First-of-its-Kind Cyber Crime Insurance Available to Protect
Business Accounts from Funds Transfer Fraud and Cyber Deception
LOS ANGELES (June 21, 2016) – 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 SecureR 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:
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.
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Contact:
Penelope Maines
Grandpoint Bank
[email protected]
213.542.2716