As cyberattacks continue to surge in both frequency and sophistication, cyber insurance has become a vital part of a company’s risk management strategy. Once considered “nice-to-have,” cyber coverage is now essential for businesses of all sizes — especially small to midsized businesses (SMBs), which are increasingly targeted by hackers and malicious actors.
But here’s the catch: cyber insurance is getting harder to obtain, more expensive, and more demanding. In 2025, the insurance landscape is shifting fast, and companies that don’t adapt may find themselves unprotected — or holding a denied claim after an attack.
So, what’s changing? Why does it matter? And most importantly — how can your business stay ahead of the curve?
Let’s break it down.
📈 The Cyber Insurance Market Has Evolved — Fast
Over the past few years, ransomware attacks have exploded. According to IBM’s 2024 Cost of a Data Breach Report, the average data breach now costs $4.45 million, with small and midsized organizations bearing more of the financial burden than ever before.
In response, cyber insurers have been hit hard. The rising number and severity of claims have forced insurance companies to:
- Increase premiums (some by over 100% year over year)
- Reduce coverage limits
- Impose stricter underwriting requirements
- Deny claims for businesses that don’t follow proper cybersecurity protocols
Whereas in the past, a business could answer a few questions and secure a policy quickly, today’s application process looks more like an IT security audit.
❌ No Controls = No Coverage
One of the biggest shifts in cyber insurance is that coverage is no longer guaranteed.
Insurers now require proof that your business has implemented certain security controls — and that those controls are maintained. If you can’t demonstrate this before applying or renewing, you may:
- Be denied coverage
- Face significantly higher premiums
- Be denied payout if a breach occurs and your controls weren’t in place
Even worse? A cyber insurance policy is not a replacement for cybersecurity. It’s a backup plan — one that only works if you’ve done your part to secure your business.
🔐 Common Cyber Insurance Requirements in 2025
So, what exactly are insurers looking for?
Here are some of the most commonly required controls to qualify for or maintain cyber insurance in 2025:
✅ 1. Multi-Factor Authentication (MFA)
MFA is now considered non-negotiable for:
- Email access
- Remote access (VPNs, RDP, etc.)
- Cloud apps (Microsoft 365, Google Workspace)
- Admin-level access to systems and servers
If MFA isn’t enabled across your organization, most carriers won’t issue a policy.
✅ 2. Endpoint Detection and Response (EDR)
Antivirus is no longer enough. Insurers now expect to see next-gen endpoint protection tools that include:
- Behavioral monitoring
- Automated threat detection
- Real-time response capabilities
These EDR tools provide enhanced visibility and reduce dwell time when threats occur.
✅ 3. Regular Data Backups (With Testing)
Backups must be:
- Automated
- Stored offsite or in the cloud
- Tested regularly to confirm they work
Insurers may ask for documentation of your backup strategy and test results.
✅ 4. Employee Security Awareness Training
Humans are still the weakest link. Insurers want to see that you:
- Conduct regular phishing simulations
- Deliver ongoing security awareness training
- Track participation and completion
This helps reduce the risk of social engineering attacks, which are still among the most common causes of breaches.
✅ 5. Incident Response Plan (IRP)
You’ll need a formal, documented plan that outlines:
- Who to contact if a breach occurs
- Steps for containment and recovery
- Roles and responsibilities
Having this in place (and reviewing it annually) shows insurers you’re prepared to respond quickly and effectively.
✅ 6. Vendor Risk Management
If you work with third-party vendors — especially IT providers — you may be asked how you assess their security practices. This includes:
- Contracts with clear data protection requirements
- Regular reviews of vendor access and activity
- Policies for onboarding and offboarding partners
⚖️ What Happens If You Don’t Meet These Requirements?
Let’s be blunt: you could be left out in the cold.
Many businesses have had claims denied because they:
- Didn’t enforce MFA, even though they said they did
- Had outdated antivirus instead of EDR
- Had backups — but never tested them
- Never trained employees to recognize phishing attacks
Insurers now expect evidence that you proactively manage your cyber risk. If your application or renewal is coming up, it’s critical to work with your IT team (or your MSP) to assess your current controls and fill in any gaps.
🤝 How We Help Clients Secure and Insure Their Business
At IntegriCom, we work hand-in-hand with our clients to:
- Perform cybersecurity assessments tailored to insurance requirements
- Deploy and manage key controls like MFA, EDR, and backups
- Run phishing simulations and employee training programs
- Write and maintain documentation (IRPs, policies, vendor checklists)
- Work with your insurance provider or broker to provide the right proof of controls
Think of us as your cyber risk partner — not just your IT team.
We make sure you’re not only covered but also prepared to defend your network, respond to incidents, and recover fast if the worst happens.
📝 Final Thoughts: Don’t Wait Until You Need It
Here’s the truth: by the time you realize you need cyber insurance, it’s probably too late to get it.
Ransomware attacks often cost six or even seven figures to recover from — and the average downtime is over 21 days. Without insurance and a strong security foundation, those numbers could put a small business out of business.
By taking proactive steps now — and working with the right technology partner — you can ensure your business is both secure and insurable.
🚀 Ready to Review Your Cyber Insurance Readiness?
Whether you’re applying for coverage for the first time or your policy is up for renewal, we can help make sure your business checks all the boxes.
Schedule a no-obligation Cyber Insurance Readiness Review with our team today.
🔒 Let’s protect your business — together.
