Cyber insurance is rapidly becoming a non-negotiable part of business risk management, especially for organizations storing customer data, handling payments, or operating in regulated industries. But qualifying for a policy—and maintaining coverage—requires a proactive cybersecurity posture.
What Is Cyber Insurance?
Cyber insurance provides financial protection for businesses against losses resulting from cyber incidents. These may include:
- Data breaches
- Ransomware and extortion
- Network outages and business interruption
- Legal and regulatory fines
- Forensics, public relations, and crisis communication
Premiums vary based on business size, industry, data sensitivity, and—most importantly—your cybersecurity maturity.
What Insurers Expect from You
Before issuing or renewing a policy, most insurers will request a detailed cybersecurity risk assessment. Expect questions (and sometimes validation checks) around:
- Authentication: Is MFA in place for all remote access and privileged accounts?
- Patching: Are all systems updated regularly, with a defined patching cadence?
- Backup Strategy: Do you have immutable, offline backups tested regularly?
- Endpoint Protection: Is antivirus/EDR in use across all devices?
- Access Controls: Are accounts provisioned and deprovisioned properly?
- Security Training: Are employees trained on phishing and secure practices?
- Incident Response Plan: Is there a documented and tested IRP?
- Compliance: Are you aligned with frameworks like NIST, CIS, or ISO?
Why Many SMBs Get Denied or Underinsured
Many small businesses don’t qualify for full coverage due to basic gaps—especially lack of MFA or outdated antivirus. Others are underinsured because they don’t fully understand their risk exposure (e.g., data stored in third-party SaaS platforms).
How Technology Architects Can Help
We conduct cyber insurance readiness assessments to:
- Benchmark your current security practices
- Identify and close insurer-flagged gaps
- Assist with technical questionnaires and documentation
- Advocate with your insurer for better rates or terms
We also provide ongoing managed services to ensure you remain compliant with policy requirements—even as threats and technologies evolve.
