What Cyber Insurers Expect from Your Business
Cyber insurance is becoming a key part of risk management for businesses of all sizes. But getting covered isn’t as simple as just paying a premium. These days, insurance providers want to see that you’re taking real steps to protect your digital environment. If you’re not meeting their baseline requirements, you might find premiums are sky-high—or worse, you get denied altogether.
We’ve had a few clients at Gray Area Consulting come to us recently after insurance applications were rejected. The common thread? Missing core cybersecurity measures insurers now expect as standard.
Why Are Cyber Insurers Setting Higher Standards?
It’s no surprise, really. Cyberattacks are more frequent and more costly. According to the latest breach figures, incidents are not only increasing in number but also severity. Insurers are tightening up to protect themselves—and that means your business needs to lift its game too.
Key Cybersecurity Measures Most Insurers Require
1. Multi-Factor Authentication (MFA)
If you’re not using MFA, you’re already behind. Many providers now require it for:
- Email accounts
- Remote access portals
- Admin logins
We explained the ins and outs of MFA in our Tech Talk episode here. In a nutshell, MFA adds another layer of security beyond just a password, and it can stop a huge number of attacks in their tracks.
2. Endpoint Detection and Response (EDR)
Traditional antivirus isn’t enough anymore. EDR tools actively monitor devices for suspicious behaviour and respond in real-time. Think of it like having a digital guard dog that not only barks when something’s wrong—but also bites.
Most insurers now expect businesses to have EDR in place, especially if you’re managing sensitive data or have remote workers.
3. Regular Backups and a Data Recovery Plan
Backing up your data is only part of the story. Insurers want to see that you’ve got a plan for getting back on your feet if something goes pear-shaped. That includes:
- Automated, scheduled backups
- Offsite or cloud-stored backups
- Regular testing of your recovery process
For more on why this matters, see our article on why backing up is non-negotiable.
4. Security Awareness Training
Human error is still one of the biggest causes of breaches. That’s why insurers want to see that your staff are trained and aware of cyber risks. This includes:
- Phishing awareness
- Safe browsing habits
- Recognising scam texts and emails
Not sure how often to train your team? We’ve got a handy guide on employee cybersecurity training frequency.
5. Patch Management Processes
Your software and systems need to be up to date. Insurers often request proof that you’ve got a patching policy in place. This means:
- Applying security updates promptly
- Tracking patch status across your fleet
- Not relying on manual updates or ‘set and forget’ approaches
For Windows environments, this can be streamlined by using tools like Microsoft Endpoint Manager.
6. Application Control
One of the key pillars of the Essential Eight framework, application control helps limit what software can run on your systems. Insurers see this as another way to reduce risk from malware and other exploits.
7. Incident Response Plan
Having an incident response plan shows you’re ready to act quickly and minimise damage if something goes wrong. Insurers are more likely to cover businesses that can demonstrate this kind of preparedness.
Your plan should outline:
- Who does what during an incident
- Steps to contain the breach
- Communication strategies (internally and externally)
What Happens If You Don’t Meet These Requirements?
We’ve seen businesses denied claims because they didn’t follow through on basic cybersecurity requirements. One Brisbane client thought they had MFA in place—but it wasn’t applied to their admin accounts. When a breach happened, the insurer refused the payout.
If you’re not sure whether your setup meets the mark, it’s worth getting a cybersecurity audit done. At Gray Area Consulting, we help businesses build strong security plans that meet insurance standards and reduce real-world risk.
It’s About More Than Just Insurance
While ticking the boxes for your insurer is important, these measures also make your business more resilient. They protect your data, your reputation, and your bottom line.
Whether you’re applying for cover or reviewing your current policy, now’s the time to check you’re implementing the right security controls. It could make all the difference if—or when—the unexpected happens.
Need help getting your business cyber insurance-ready? Get in touch with us for a no-nonsense review of your current setup.
