Insurance providers now evaluate a business’s cybersecurity practices before approving coverage. They want to know that organizations have reasonable protections in place to reduce the likelihood and impact of cyber incidents.
For small and medium-sized businesses, understanding what insurers look for can make the application process easier while also improving overall cybersecurity.
Use this cyber insurance checklist to review the 12 security controls insurers commonly expect businesses to have in place.
1. Multi-Factor Authentication (MFA)
Multi-factor authentication is one of the most commonly requested cybersecurity controls by insurance providers.
MFA adds an additional layer of protection by requiring users to verify their identity using more than just a password.
Businesses should enable MFA for:
- Email accounts
- Microsoft 365
- Cloud applications
- Remote access tools
- Administrative accounts
- Financial systems
Even if a password is stolen, MFA can prevent attackers from gaining access to important business systems.
2. Strong Password Management
Weak or reused passwords remain one of the most common causes of security breaches.
Insurance providers typically expect businesses to have password security practices such as:
- Minimum password requirements
- Unique passwords for each account
- Password managers
- Restrictions on password reuse
- Secure account management procedures
Businesses should also regularly review user accounts and remove access for former employees.
3. Endpoint Protection
Every laptop, desktop, and mobile device connected to a business network can become a potential entry point for attackers.
Insurers often look for endpoint protection solutions that include:
- Antivirus protection
- Endpoint detection and response (EDR)
- Malware prevention
- Device monitoring
- Threat alerts
Modern endpoint security tools can detect suspicious behavior and help stop attacks before they spread.
4. Regular Security Updates and Patch Management
Outdated software creates opportunities for attackers to exploit known vulnerabilities.
Businesses should have a process for regularly updating:
- Operating systems
- Business applications
- Security software
- Network devices
- Cloud platforms
Insurance providers want to see that businesses are actively maintaining their technology environment rather than leaving known vulnerabilities unaddressed.
5. Secure Data Backups
Reliable backups are essential for recovering from ransomware, hardware failures, and accidental data loss.
A strong backup strategy should include:
- Regular automated backups
- Secure backup storage
- Protected backup credentials
- Recovery testing
- Multiple backup copies
Businesses should regularly verify that backups can be restored successfully.
A backup system that has never been tested may not provide the protection a business expects during an emergency.
6. Email Security Controls
Email remains one of the most common methods attackers use to target businesses.
Cyber insurance providers often look for email security protections such as:
- Spam filtering
- Phishing detection
- Malicious attachment scanning
- Link protection
- Email authentication protocols
These controls help reduce the risk of employees falling victim to phishing and business email compromise attacks.
7. Employee Security Awareness Training
Employees play an important role in cybersecurity.
Even advanced security tools can be bypassed if an employee unknowingly clicks a malicious link or shares sensitive information.
Security training should cover:
- Identifying phishing emails
- Suspicious attachments
- Social engineering tactics
- Password safety
- Reporting security concerns
Regular training helps create a security-aware workplace.
8. Access Controls and User Permissions
Businesses should follow the principle of least privilege, meaning employees only receive access to the information and systems they need.
Insurers may review whether businesses:
- Limit administrative access
- Remove inactive accounts
- Review permissions regularly
- Control remote access
- Monitor privileged users
Proper access management reduces the damage that can occur if an account is compromised.
9. Firewall and Network Security
Firewalls help control traffic entering and leaving business networks.
Businesses should maintain:
- Properly configured firewalls
- Secure wireless networks
- Network monitoring
- Segmented systems where appropriate
- Updated network equipment
Strong network security creates additional barriers against unauthorized access.
10. Incident Response Plan
A cyberattack requires quick action.
Insurance providers often want businesses to have a documented incident response plan that explains:
- Who handles security incidents
- How threats are reported
- How systems are isolated
- Who communicates with customers or partners
- How recovery will happen
A prepared response can reduce downtime and financial losses after an attack.
11. Regular Security Assessments
Cybersecurity should be reviewed regularly, not only after an incident occurs.
Security assessments can identify:
- Vulnerabilities
- Misconfigured systems
- Outdated software
- Weak access controls
- Security gaps
Regular reviews demonstrate to insurers that a business actively manages cyber risk.
12. Cybersecurity Policies and Documentation
Insurance companies may ask businesses to provide documentation showing that security practices are in place.
Important policies may include:
- Acceptable technology use policies
- Password policies
- Remote work security guidelines
- Backup procedures
- Incident response plans
- Employee training records
Documentation helps demonstrate that cybersecurity processes are consistently followed.
Additional Steps to Improve Cyber Insurance Readiness
Beyond these 12 controls, businesses can improve their security posture by:
- Reviewing cyber insurance requirements annually
- Conducting vulnerability scans
- Testing disaster recovery plans
- Monitoring suspicious activity
- Keeping software licenses current
- Working with a trusted IT provider
Cybersecurity is an ongoing process, and insurers recognize businesses that continuously improve their defenses.
Why Cyber Insurance Controls Matter Beyond Insurance
Meeting cyber insurance requirements is not just about getting approved for coverage. These security controls help protect your business from costly incidents.
Strong cybersecurity practices can help:
- Reduce downtime
- Protect customer information
- Prevent financial losses
- Improve business continuity
- Build customer trust
Cyber insurance provides financial protection, but strong security controls help prevent incidents from happening in the first place.
Prepare Your Business With I.T. For Less
Cyber insurance requirements can feel overwhelming, especially for small businesses without dedicated cybersecurity teams. I.T. For Less helps businesses strengthen their security posture through cybersecurity assessments, Microsoft 365 security, endpoint protection, backup solutions, multi-factor authentication, and proactive IT management. Our team can help identify security gaps, implement essential controls, and prepare your business for the cybersecurity expectations of modern insurers. Contact I.T. For Less today to build a stronger cybersecurity foundation and improve your cyber insurance readiness.