The first policy covering mobile phone payment technology fraud is being offered by specialist firm insurance2go.co.uk.
More UK shoppers are using mobile phones to pay for goods and services – mobile wallet technology – and a host of retailers are preparing to accept this payment method. However, mobiles are likely to become more attractive to thieves, and this is why insurance2go.co.uk says it will cover losses resulting from payments from stolen phones.
"We're responding to a demand from customers who like the idea of being able to ditch their cards but are worried what will happen if the handset is lost or stolen," said Duncan Spencer, managing director of the insurance firm.
"We want to make sure our customers are fully covered for all eventualities."
But consumer groups say an alternative to a standalone policy is to take out an "any risks" addition to your home contents, which covers damage and theft of valuables outside the home. This though would not include extra losses resulting from a mobile wallet theft.