Does Your Business Have the Cyber Coverage It Needs?

Preventing cyberattacks starts with implementing and adhering to best-in-class cybersecurity practices. And if that’s not enough to prevent a cyber-attack, cyber insurance coverage is another way to protect your business from the consequences of a cyberattack.

December 10, 2025 | Business

By: Aaron S.

Aaron joined Acuity in 2017 as our Retail Specialist—bringing with him almost 30 years of experience in a broad range of retail. He started his career stocking shelves in the seasonal department at a local retailer. A few years later, Aaron transitioned to a gas station/convenience store, where he worked second shift while getting his degree in organizational communications from the University of Wisconsin-Eau Claire. It was during this time he made the move to the loss prevention and safety aspect of retail. Over the next 25 years, he worked in various retail segments, including video games, cosmetics/skincare, hardware/appliances, pharmacy/grocery, and clothing. Aaron held several positions during this time, including District Loss Prevention Manager, Regional Loss Prevention Manager, Regional Compliance Auditor, and National Manager of Loss Prevention and Operations. Outside work, Aaron likes to spend time with his wife (who has also worked in retail for over 20 years) and their twin teenage boys. They enjoy being outdoors on the water, fishing, and camping. As the Retail Specialist, Aaron’s goal is to enhance the partnership between retailers and Acuity by showing retailers that an insurance company can be a supportive resource and that Acuity truly understands their industry.

Cyberattacks continue to rise, and businesses of every size face growing exposure to digital threats. From phishing schemes to ransomware, today’s cyber risks can be both financially devastating and operationally disruptive. Even businesses with strong security practices can experience an incident—and without the right insurance coverage in place, recovery can be costly.

Recent research underscores how quickly the threat landscape is shifting. The 2024 Verizon Data Breach Investigations Report documented 10,626 confirmed data breaches in 2023—more than double the number analyzed the prior year.

This surge in breach activity demonstrates how pervasive cyber risk has become for organizations of all sizes. At the same time, data from the National Association of Insurance Commissioners (NAIC) shows the number of active U.S. cyber insurance policies climbed to approximately 4.37 million in 2023, reflecting growing demand from businesses seeking financial protection against cyber threats.

Preventing cyberattacks starts with implementing and following strong cybersecurity practices. And if that’s not enough to prevent an attack, cyber insurance is another important way to help protect your business from the consequences.

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

Cyber Coverages Small Businesses Should Consider

Data Compromise Response Expenses

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

Professional legal consultation
Forensic IT review to determine the cause and scope of the breach
Notifying affected individuals
Providing identity recovery services to those individuals

Computer Attack Expenses

If a business experiences a computer attack that corrupts a computer system or its data, this coverage can help pay for:

Restoring or recreating corrupted data
Restoring computer systems
Loss of business income associated with the attack
Public relations services to help communicate with customers and stakeholders

Cyber Extortion (Ransomware)

If your business receives a cyber extortion threat—such as a hacker demanding payment to restore access—this coverage can help pay for:

A negotiator to manage the extortion threat
The amount paid to help eliminate the cyber threat (subject to policy terms and conditions)

Misdirected Payment Fraud

If a business is deceived into paying a fraudster instead of a legitimate vendor or partner—often through spoofed emails or invoices—this coverage can reimburse the amount wrongfully transferred.

Computer Fraud

If unauthorized access to your computer system results in fraudulent changes that cause funds to be diverted, this coverage can reimburse the stolen amount.

Identity Recovery

If a business owner's identity is stolen, this coverage provides identity recovery services and reimbursement for related expenses, helping restore the owner's identity and reputation.

Data Compromise Liability

If personal data in your care is breached and affected individuals sue, this coverage can help pay defense and settlement costs, subject to policy terms.

Network Security Liability

If your business’s breach or cyberattack causes damage to a third party (such as a customer or vendor), this coverage can help pay defense, settlement, and judgment costs.

Electronic Media Liability

If your business faces a lawsuit alleging infringement (copyright, slogan, or trademark), defamation, or violation of privacy rights stemming from your online content, this coverage can help pay defense, settlement, and judgment costs.

Why It Matters Now More Than Ever

Cyberattacks are growing more sophisticated, more frequent, and more damaging—especially for small and midsize businesses without extensive IT support. While strong cybersecurity practices remain essential, cyber insurance provides an additional layer of financial and operational protection that can make a critical difference in how quickly your business can recover after an attack.

Take the Next Step

To learn more about the cyber coverage Acuity offers and how it can help protect your business, visit: Acuity.com/cyber. Or reach out to your independent insurance agent.