Cyberinsurance Compliance

As cyberattacks continue to rise in volume and sophistication, cyberinsurance has become a critical safeguard for organizations. But coverage alone isn’t enough—your ability to collect on a policy depends on your compliance with its technical and procedural requirements.

In 2024, 62% of cyberinsurance claims were denied or reduced due to non-compliance with baseline cybersecurity controls like multi-factor authentication, endpoint detection, and event logging (Marsh McLennan, 2024). The harsh reality: what you don’t know about your policy’s requirements can cost your business millions in uncovered losses.

So what do cyberinsurance providers look for—and how can you stay ahead?

5 Key Controls Insurers Require—and Why They Matter

To reduce risk and ensure payout eligibility, cyberinsurance providers are becoming more selective. They now expect organizations to prove that foundational security controls are not just in place, but actively enforced and monitored.

Below are the five most critical controls insurers look for before issuing or renewing policies—and why these measures are essential to your organization’s protection and payout potential:

Multi-Factor Authentication (MFA)

Most insurers now require MFA to be enforced across all critical access points, including corporate email, VPNs, and privileged accounts. This is because compromised credentials remain the leading cause of breaches. MFA provides a vital second layer of security that significantly reduces the risk of unauthorized access—even if a password is stolen. From an insurer’s perspective, the absence of MFA is a major red flag, and failure to implement it could invalidate your claim in the event of a breach.

Endpoint Detection and Response (EDR)

EDR has become a baseline requirement in cyberinsurance policies. Unlike traditional antivirus tools, EDR solutions provide real-time threat detection, behavioral analysis, automated containment, and detailed logging capabilities. These tools help detect ransomware, zero-day attacks, and lateral movement before serious damage occurs. Insurers often ask for proof of active EDR deployment across all endpoints—especially in hybrid or remote environments—because it’s one of the most effective ways to reduce the cost and scope of cyber incidents.

Privileged Access Management (PAM)

Insurers want to see that you have strong controls over who can access sensitive systems. PAM involves implementing Role-Based Access Control (RBAC), vaulting admin credentials, and monitoring privileged sessions. These measures reduce the risk of insider threats and prevent attackers from escalating access once inside the network. A breach involving a poorly managed privileged account can raise questions of negligence—and give your insurer grounds to deny coverage or reduce payout.

Regular Vulnerability Scans and Patch Management

Cyber insurers now expect organizations to proactively identify and remediate security vulnerabilities. This means conducting scheduled vulnerability scans, prioritizing issues based on severity, and applying security patches promptly. Many insurers even perform their own scans during underwriting. If they find evidence of outdated software or unpatched critical systems, it may lead to higher premiums—or denial of coverage. The bottom line: failure to patch known vulnerabilities is often seen as avoidable and negligent.

Incident Response and Business Continuity Plans

A documented and tested incident response (IR) and business continuity plan is no longer optional—it’s a requirement. Insurers want evidence that your team knows what to do in the event of a breach and can act quickly to contain damage and resume operations. This includes clear IR roles, recovery time objectives (RTOs), and periodic testing. According to IBM’s 2023 report, organizations with well-tested IR plans saved an average of $2.66 million per breach. Without a plan in place, insurers may question your readiness—and delay or deny claims.

The Shift Toward Proactive Audits

In the past, insurance carriers often reviewed your cyber posture only during the application process. That’s changing.

Today, many insurers conduct ongoing audits and require evidence of continued compliance, including logs, training records, and third-party security assessments. A growing number of providers also use security scoring tools like BitSight and SecurityScorecard to monitor client posture continuously.

What Happens If You’re Not Compliant?

Failing to meet cyberinsurance requirements could lead to:

• Claim denial following an incident
• Policy cancellation or premium hikes
• Legal liability if stakeholders or regulators believe negligence was involved

A 2023 survey by NetDiligence reported that 28% of organizations faced delays or denial in payouts due to compliance gaps identified post-breach.

Best Practices for Maintaining Compliance

Conduct Regular Internal Audits

Verify that your security controls align with your cyberinsurance policy. Routine audits help identify gaps early and demonstrate due diligence if a claim is filed.

Document and Test Your IR and BC/DR Plans

Insurers want proof that your incident response and recovery plans are not only in place but tested regularly. Run tabletop exercises and keep plans up to date.

Engage a Trusted Cybersecurity Provider

A third-party provider can help implement complex controls, manage 24/7 monitoring, and generate audit-ready compliance reports that meet insurer standards.

Communicate with Your Insurer

Maintain an open line with your provider. Understand what they expect and update them on major changes to your security posture—before it affects your coverage.

Struggling to Stay Compliant? We Can Help.

Cyberinsurance compliance isn’t just about checking boxes—it’s about building a resilient, defensible security posture that satisfies both your insurer and your board.

Stratejm, in partnership with Bell, offers Managed Cybersecurity Services that are specifically designed to help organizations like yours meet the evolving requirements of cyberinsurance providers. From 24×7 MDR to vulnerability management and compliance reporting, our team acts as an extension of yours—helping you meet your obligations with confidence.

Stratejm + Bell: Your Trusted Partner in Cyberinsurance Compliance

Our managed cybersecurity services are purpose-built to align with evolving insurer requirements—empowering your team with the visibility, automation, and expert guidance needed to remain eligible for coverage and resilient in the face of cyber threats.

What Sets Us Apart:

• 24×7 Security Operations Center (SOC) delivering real-time detection, response, and audit-ready documentation
• Integrated vulnerability management, MFA, and endpoint defense tailored to meet policy standards
• Continuous compliance monitoring with customizable dashboards and insurer-aligned reporting
• Advisory services from cybersecurity and risk professionals to help navigate underwriting, renewals, and breach response

Whether you’re seeking to obtain a new policy, reduce premiums, or ensure claims are honored when it matters most, Stratejm + Bell delivers the proven expertise and trusted infrastructure to support your compliance journey—today and into the future.

Contact us today to get started and future-proof your cybersecurity strategy.

Sources

• Marsh McLennan Cyber Risk Report, 2024
• IBM Cost of a Data Breach Report, 2023
• NetDiligence Cyber Claims Study, 2023
• SecurityScorecard Research, 2024