Increase in cyber liability insurance claims says research

Acuity Insurance reports ongoing increased insurance risk for individuals and businesses as cybercrime rockets.

Acuity Insurance 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."

For personal policies, Acuity saw more than a 90% increase in cyber claims being reported in 2021 compared with 2020.

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, Acuity says adding a cyber endorsement will cost you far less than any cybercrime loss would.


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