Acuity Reports Increase in Cyber Liability Insurance Claims as Cybercrime Skyrockets

SHEBOYGAN, Wis., Oct. 13, 2022
/PRNewswire/ — In recognition of Cybersecurity Awareness Month, Acuity
Insurance — the sole regional insurance provider rated A+ by both AM
Best and Standard & Poor’s, with over $6 billion in assets — is reporting an increased need for cyber liability insurance across both personal and business policyholders. From June 2021 to June 2022, Acuity Insurance saw cyber liability insurance claims on its commercial
insurance policies increase by more than 50%. For personal policies,
Acuity saw more than a 90% increase in cyber claims being reported in
2021 compared with 2020.

“Our lives, homes and businesses are more connected than ever before,” said Steve Maliborski,
general manager of commercial products at Acuity Insurance. “Being
connected leads to a greater risk of cyberattacks, which aren’t covered
under standard homeowners or business insurance policies.”

Acuity experts caution that everyone is at risk — whether you are a
small business owner or an individual — as cyberattacks continue to pose
a serious financial threat. From 2019 to 2021, cyberattacks were up 50%
from the previous year, according to recent research. Wire fraud and
gift card scams are two of the most common types of cyberattacks
impacting both businesses and individuals, Acuity found.

“Scams involving social engineering are some of the easiest to
fall for, as fraudsters exploit a person’s trust to obtain money or
personal information, which can then be used for unauthorized
withdrawals of money,” said Bob Hertel,
director of personal lines product development at Acuity Insurance.
“Cyber insurance can protect you from financial loss caused by wire
transfer fraud, phishing attacks, cyber extortion, cyberbullying and
more.”

While all cybercrimes have a financial impact, fraudulent
wire transfers often come with greater losses. Banks are typically not
responsible for funds lost as a result of a fraudulent wire transfer
inadvertently authorized by the customer. Whether it’s a wrongful money
transfer by a business or an individual, cyber insurance will help
mitigate some of the financial loss caused by these scams.

Although
many individuals and companies look to keep their insurance costs as
low as possible, adding a cyber endorsement will cost you far less than
any cybercrime loss would. At Acuity, the personal lines identity fraud
expense and cyber protection endorsement cost just $35 per year, while the average commercial line policy starts at approximately $260 per year.

While
the best defense is prevention, you can have peace of mind knowing you
are properly covered. Acuity’s personal and commercial cyber protection
policies contain resources to help minimize cyber risks and protect
individuals and businesses. For more information, visit www.acuity.com.

Acuity Insurance, headquartered in Sheboygan, Wisconsin,
insures over 125,000 businesses, including 300,000 commercial vehicles,
and nearly a half-million homes and private passenger autos across 30
states. Rated A+ by AM Best and S&P, Acuity employs over 1,500
people.

SOURCE: Acuity Insurance