Cyber Insurance Is Growing Up (Fast) 

The past few years have been a cybercrime rollercoaster. Ransomware attacks are more sophisticated, phishing scams are trickier, and data breaches are more costly. Insurers have paid billions in claims often without fully understanding the security postures of the businesses they covered. 

Now? They’re tightening the reins. Insurance providers want proof that your business takes IT security seriously before they sign on the dotted line. The result is a more rigorous process, with requirements that look more like a cybersecurity framework checklist than a policy application. 

What’s Behind the Crackdown? 

There are three major reasons insurance providers are suddenly acting like IT auditors: 

1. Skyrocketing Claims 

The average cost of a data breach in 2024 was $4.45 million globally, according to IBM. With cyberattacks now occurring every 39 seconds, many insurers have found themselves paying out far more than they’re bringing in. 

2. Underwriting Losses 

Too many insurance companies took on high-risk clients without proper vetting. That led to widespread underwriting losses, forcing providers to revise their strategies. 

3. Evolving Threat Landscape 

Cybercriminals have leveled up. Its no longer just large corporations being targeted small and mid-sized businesses are now prime prey due to weaker security measures. 

What Are the New Cyber Insurance Requirements in 2025? 

Insurers now demand proof not just promises. Here are the most common security requirements popping up on applications today: 

✅ Multi-Factor Authentication (MFA) 

This one’s non-negotiable. If you’re not using multi-factor authentication for cyber insurance coverage—especially on email, VPNs, remote desktop tools, and admin accounts—you’ll likely be denied coverage. 

✅ Endpoint Detection and Response (EDR) 

Basic antivirus isn’t enough. Insurers want to see advanced endpoint protection that can detect and isolate threats in real time. 

✅ Identity Threat Detection and Response (ITDR) 

ITDR is a game-changer for any organization! Having ITDR ensures you’re always one step ahead, protecting your sensitive data and resources from unauthorized access and credential misuse. It’s like having a superhero team guarding your digital fortress! 

✅ Employee Cybersecurity Training 

A well-meaning employee clicking on a phishing email is still one of the biggest risks. Providers expect regular cybersecurity awareness training as part of your company culture. 

✅ Data Backups (That Actually Work) 

Having backups is great. Testing them is better. Insurers now ask how frequently you back up and test your data restoration process. 

✅ Patch Management and Software Updates 

Outdated software is like leaving your doors unlocked. Providers want to know you have a patch management policy in place to stay up-to-date. 

✅ Incident Response Plan 

If a cyberattack hits, what’s your plan? A documented incident response plan is a must-have. 

What Happens If You Don’t Comply? 

Short answer: no coverage. Or worse, you could be denied a claim after an incident because you failed to meet the policy’s fine print. 

Imagine paying thousands in premiums, suffering a ransomware attack, and then finding out your claim is rejected because you didn’t enable MFA. Unfortunately, this exact scenario is becoming more common. 

How to Get Your Business Cyber Insurance-Ready 

Feeling overwhelmed? Don’t worry—we’ve got your back. Here’s an IT security checklist to help you meet 2025’s cyber insurance requirements: 

 IT Security Checklist for Cyber Insurance: 

• ✅ Enable MFA across all accounts and systems 

• ✅ Use advanced EDR tools (not just antivirus) 

• ✅ Use ITDR tools to monitor your Microsoft 365 environment 

• ✅ Conduct monthlycybersecurity training for all employees 

• ✅ Perform regular, tested data backups (off-site or cloud-based) 

• ✅ Apply critical patches within 7 days (or sooner) 

• ✅ Develop and test an incident response plan 

• ✅ Conduct an annual security risk assessment 

• ✅ Review and document vendor access and third-party risks 

Don’t Go It Alone—Partner with a Managed IT Provider 

Let’s be real: not every business has a full-time security team or a CISO on staff. That’s where a Managed IT Services Provider (MSP) like Simpleworks comes in. 

We help businesses just like yours: 

• Assess and improve your IT security posture 

• Ensure compliance with cyber insurance requirements 

• Deploy and manage MFA, EDR, ITDR, backups, and more 

• Serve as your trusted cybersecurity guide