Introducing Accounts Receivable Insurance to
Address Your Client’s Customer’s Cyber Issues
A/R SECURITY SOLUTIONS
This information is provided as a general overview for agents and brokers. Coverage will be underwritten by an insurance subsidiary of Allied World
Assurance Company Holdings, GmbH, a Fairfax company (“Allied World”). Such subsidiaries currently carry an A.M. Best rating of “A” (Excellent), a
Moody’s rating of “A3” (Good) and a Standard & Poor’s rating of “A-” (Strong), as applicable. Coverage is offered only through licensed agents and
brokers. Actual coverage may vary and is subject to policy language as issued. Coverage may not be available in all jurisdictions. Risk management
services are provided or arranged through AWAC Services Company, a member company of Allied World. © 2018 Allied World Assurance Company
Holdings, GmbH. All rights reserved.
CFOs continue to play an important role at
their companies as they are generally in charge
of risk mitigation, which includes cyber risk
security. Cyber risk mitigation is now a top
priority for companies. In this area of cyber
controls, CFOs ensure that their companies
have levels of security to reduce the chance of
being compromised by having a cyber insurance
policy, but next in line would be addressing
the exposure their companies have when
customers have cyber issues.
To date, adequate discussions between CFOs
and their customers about addressing their
customers’ potential cyber issues has not
occurred. If a CFO is not aware of their
customers’ cyber controls then there is a
potential for risk exposure to their company.
There should be a risk assessment on
the potential for financial issues due to an
Accounts Receivable loss.
An Accounts Receivable insurance policy
can provide coverage for contingent business
interruption due to a 3rd party Buyer/Customer
who experiences system disruptions, which
lead to a non-payment or customer bankruptcy
and ultimately becomes debt that is difficult to
recover. Cyber insurance policies are not meant
to pick up non-payment by customers, but an
Accounts Receivable insurance policy is a solution
to customer cyber issues and allows a company
to secure their complete supply chain.
CFOs that add an Accounts Receivable insurance
program can address compliance through pre-loss
planning of their largest asset, Accounts Receivable.
Accounts Receivable insurance provides
coverage on both domestic and foreign customers
and it does not exclude from coverage of third
party customer cyber events that lead to a
non-payment. It not only expands your cyber
risk management strategy, but also enhances
your Enterprise Risk Management strategy and
addresses auditors concerns about customer
concentration risk. Additionally, it allows a CFO
to have a discussion with their auditors to either
reduce or cap their allowance for bad debt
reserve expense in the face of expanding cyber
risk concerns.
For more information on A/R Solutions,
please email Glenn Robins, Vice President at
• Do you have a solution for when your customer has a cyber-attack that
leads to a non-payment?
• Should CFOs consider expansion of their cyber security compliance
program by putting an Accounts Receivable Insurance Program in place?
