Event-Type Category

Definition

Internal fraud

Losses due to acts of a type intended to defraud, misappropriate property or circumvent regulations, the law or company policy, excluding diversity/discrimination events, which involves at least one internal party

External fraud

Losses due to acts of a type intended to defraud, misappropriate property or circumvent the law, by a third party

Employment Practices and Workplace Safety

Losses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity/discrimination events

Clients, Products & Business Practices

Losses arising from an unintentional or negligent failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), or from the nature or design of a product

Damage to Physical Assets

Losses arising from loss or damage to physical assets from natural disaster or other events

Business disruption and system failures

Losses arising from disruption of business or system failures

Execution, Delivery & Process Management

Losses from failed transaction processing or process management, from relations with trade counterparties and vendors