Acuity Reports Increase in Cyber Liability Insurance Claims as Cybercrime Skyrockets

PRESS RELEASE

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.

About Acuity

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