Does Your Business Have the Cyber Coverage It Needs?

Cybercrime doesn’t just happen to big corporations. In fact, many small and midsize businesses are prime targets because cybercriminals assume they have fewer protections in place. A single cyber incident can lead to major expenses—like restoring data, paying for legal help, notifying customers, and even dealing with lawsuits or regulatory action. That’s why it’s important to make sure your business has cyber insurance that’s built for today’s evolving threats.

The 2024 Verizon Data Breach Investigations Report* documented 10,626 confirmed data breaches in 2023—more than double the number analyzed the prior year. That’s why it’s important to understand what cyber insurance can help cover—and where gaps often exist.

Below is a breakdown of cyber coverages small businesses should consider.

First-Party Coverages

(These cover the cost of responding to cybercrime and recovering after an incident.)

Data Compromise Response

If your business discovers personal or confidential data in its care was breached (for example, stolen or inadvertently disclosed), this coverage can help pay for:

• Forensic IT services

• Breach notification

• Credit monitoring and case management services

• Legal counsel

• PR services

• Reputational harm support

• Reward payments

• Regulatory fines and penalties

• PCI assessments, fines, and penalties

Computer Attack

If your business experiences a computer attack that damages data and/or software, this coverage can help pay for:

• Data restoration and data recreation

• System restoration costs

• Business interruption

• PR services

• Reward payments

• Future loss avoidance coverage for improvements to your computer system after an attack

Cyber Extortion

If your business receives a ransomware or extortion threat, this coverage can help pay for:

• The cost of a negotiator or investigator

• Payments to eliminate the ransomware or extortion threat

Misdirected Payment Fraud

This coverage pays for direct financial loss when a criminal convinces the insured or the insured’s financial institution to send or divert money, payment, or tangible property using email, fax, or telephone.
 

Computer Fraud

If a cybercriminal uses unauthorized system access to transfer money, securities, or other property from your premises or bank, this coverage can help pay for direct financial loss resulting from those fraudulent transfers.

Telecommunication Fraud Coverage

Cybercriminals may gain unauthorized access to your telecommunications system and generate fraudulent charges. This coverage can help pay for payments owed to a telephone service provider resulting from fraudulent charges caused by unauthorized access to the insured’s telecommunications system.

Identity Recovery

If identity theft impacts the owner of an insured business, this coverage provides case management and can reimburse eligible expenses resulting from identity theft, including:

• Out-of-pocket costs

• Legal expenses

• Lost wages

• Child or elder care

Third-Party Coverages

(These help cover legal costs if your business is sued as a result of a cybercrime.)

Privacy Incident Liability

If your business faces legal action after a privacy incident, this coverage can help pay costs (within limits) to defend against lawsuits by affected individuals or judgments brought by:

• State agencies

• Regulatory agencies

Network Security Liability

If someone alleges your business’s computer security negligence caused them harm, this coverage can help cover:

• Settlement costs

• Defense costs

Electronic Media Liability

Online content can create legal exposure—especially if your business is accused of wrongdoing involving intellectual property or reputation. This coverage can help pay settlement and defense costs for lawsuits alleging:

• Copyright or trademark infringement

• Defamation of a person or organization

• Violation of a person’s right to privacy

Keep Your Business Protected

Recovering from a cyber incident matters—but reducing the chances of one happening in the first place is just as important.

Acuity's Cyber Suite customers receive complimentary access to CyberSafety, which can help strengthen their cybersecurity with tools such as:

• Website monitoring

• Employee training

CyberSafety is designed to support proactive risk reduction—helping businesses build safer habits and reduce exposure before an incident ever occurs.

Take the Next Step

Cyber threats evolve quickly, and the best protection is a combination of smart prevention and strong coverage. If you’re unsure whether your business has the cyber protection it needs—or want help understanding which coverages may apply—your Acuity agent can help you evaluate your risks and choose the right solution.

To learn more about the cyber coverages Acuity offers and how it can help protect your business, visit us here. Or reach out to your independent insurance agent.

 

Source:

*Verizon 2024 Data Breach Investigations Report