Cyber insurance used to be simple. A few forms, a small premium, and you were covered against the financial fallout of a cyber attack. But those days are gone.
As ransomware and phishing attacks continue to rise, insurers have tightened their requirements—and businesses without strong security controls are finding it harder (and more expensive) to get coverage.
If your policy is up for renewal, it’s time to take a closer look at your IT readiness.
The New Reality: Insurers Are Asking Tougher Questions
Not long ago, a cyber insurance questionnaire might have asked whether you had antivirus software or a firewall. Today, insurers expect far more detailed controls, and they want proof.
Typical requirements now include:
- Security monitoring
- Multi-Factor Authentication (MFA) for all remote and administrative logins
- Regular, tested data backups (preferably offsite or cloud-based)
- Endpoint detection and response (EDR) tools
- Email security and phishing prevention measures
- Documented incident response and recovery plans
- End user security training
Without these safeguards, many insurers will either deny coverage, raise premiums, or exclude certain types of incidents from your policy altogether.
Why It Matters for SMBs
Small and midsize businesses often assume they’re “too small” to be targeted, but insurers know better. SMBs are hit hardest by modern cyber attacks because they often lack the layered defenses of larger enterprises.
A single breach can result in:
- Ransom demands in the tens or hundreds of thousands
- Downtime that halts operations for days
- Legal exposure for data loss or compliance violations
- Lost trust with customers and partners
- Financial losses due to social engineering and redirected payments
That’s why insurers are raising the bar: to encourage prevention, not just payout.
Compliance and Cyber Insurance Go Hand-in-Hand
Many of the same frameworks that help you achieve industry compliance—like NIST, HIPAA, or CMMC—also align with what insurance providers expect.
If you’re already pursuing compliance, you’re well on your way to meeting cyber insurance criteria. But gaps still exist, especially around user access, data protection, and documentation.
How MSPs Help Bridge the Gap
Meeting these requirements doesn’t have to overwhelm your internal IT team. A Managed Service Provider (MSP) helps by:
- Implementing MFA, encryption, and backup systems that check every insurer’s box
- Monitoring for threats 24/7 so you can prove ongoing protection
- Providing documentation for your insurance audits or renewals
- Creating an incident response plan that meets compliance and insurance standards
The result? A stronger security posture, better insurability, and a business that’s truly protected.
Don’t Wait Until Renewal Season
The time to prepare isn’t when your renewal packet arrives—it’s now. Insurers reward readiness, and the sooner you can demonstrate your security maturity, the better your odds of maintaining affordable coverage.
Ready to align your security, compliance, and coverage?
Our team helps businesses of all sizes build IT strategies that reduce risk and help you stay insurable.
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