The Importance of Personal Cyber Insurance Coverage

Many of us manage our finances online, shop through various retail websites, and share personal information on social media platforms. While news coverage often highlights major corporations that fall victim to cyberattacks or data breaches, it’s important to remember that individuals are equally at risk. According to the Identity Theft Resource Center's Annual Report, 2023 saw over 353 million people in the United States being affected by cybercrime, including data breaches, leakage, and exposure. 

Just like corporations, individuals need to put security measures in place to fight cybercrime and obtain sufficient insurance coverage.  We recommend individuals buy cyber attack coverage to protect themselves from financial losses, identity theft, and other damages resulting from online security breaches.

Acuity offers Identity Fraud Expense and Cyber Protection coverage available to our personal lines customers. This important coverage can be added to your renters, condo, or homeowners policy. 

What does identity fraud and cyber insurance include?

Our Identity Fraud Expense and Cyber Protection coverage provides expert guidance for:

• Identity Fraud Expense Reimbursement and Recovery Assistance
• Data Recovery and System Restoration
• Credit Card Fraud, Forgery, Cybercrime
• Cyber Extortion
• Cyber Bullying
• Breach Notification Costs
• Cyber Protection Legal Expense and Damages Reimbursement

When might you need this coverage?

• Fraudulent charges on your credit or debit card
• Hacked email or social media accounts compromising personal information
• Online cyber bullying or harassment
• Wire fraud scams
• Compromised banking information

Phishing and Electronic Theft Example

• Scenario: A woman received an email from her cell phone provider prompting her to update her account information for security reasons. Believing that the email was legitimate, she clicked the link and provided her complete bank account and billing address information. Later, she discovered several thousand dollars missing from her account and realized she had been tricked into sharing her information with a hacker. 
• Potential Outcome: : The Federal Electronic Funds Transfer Act limits your personal responsibility for financial loss if you report an unauthorized transfer to your bank or credit union within 60 days from the time you receive your statement. If your loss is not reimbursed by the bank, Acuity’s cyber protection may reimburse you for the theft of money from your bank account by electronic means.

While the best defense is prevention, knowing you are properly covered also provides great peace of mind. The Acuity Identity Fraud Expense and Cyber Protection information portal contains resources that will help you and your family better understand your cyber risks and become “cyber smart.” Simply access this information by visiting acuity.com. For more information or to add the Identity Fraud Expense and Cyber Protection endorsement, contact your Acuity agent today.

*All claim outcomes are subject to the specifics of each individual claim.

Sources:
https://www.federalreserve.gov/boarddocs/caletters/2008/0807/08-07_attachment.pdf

https://www.acuity.com/personal/homeowners-insurance/identity-theft

https://www.acuity.com/ws/public/agency/cobrand/document?dbName=brochdb&brochureLink=Identity%20Fraud%20Expense%20and%20Cyber%20Protection&cobrandable=false&state=AZ
https://www.idtheftcenter.org/publication/2023-data-breach-report/