Cyber insurance used to be a safety net. Today, it’s more like a qualification test.
Many organizations assume that having a cyber insurance policy means they’re protected if an attack happens. In reality, insurers now expect companies to prove they can prevent, detect, and recover from cyber incidents before coverage is issued or renewed.
So, the real question is no longer “Do we have cyber insurance?”
It’s “Are we actually prepared to respond if a cyber-attack occurs?”
This guide breaks down what cyber insurers are requiring in 2026 — and what businesses must have in place to remain insurable.
Ransomware and data breaches have driven record-setting claims across every industry. In many cases, insurers paid out millions to organizations that lacked basic security controls, such as MFA, endpoint protection, or viable backups.
Those losses forced a reset.
Insurers now recognize that cybersecurity posture is the single strongest predictor of claim frequency and severity. As a result, underwriting has shifted from surface-level questionnaires to deeper technical assessments. Security maturity now directly determines whether coverage is approved, limited, or denied.
| Then (Pre-2020) | Now (2026) |
| Coverage based on company size | Coverage based on security posture |
| Minimal security questionnaires | Detailed technical assessments |
| Claims often paid after attacks | Claims denied if controls missing |
| Insurance seen as protection | Insurance depends on preparedness |
Cyber insurance is no longer a substitute for cybersecurity — it depends on it.
Fill out this form if you would like to evaluate your cyber insurance readiness.
Most cyber insurers now operate from a defined baseline of required controls. These controls are not aspirational best practices — they represent the minimum acceptable level of risk an insurer is willing to underwrite.
Organizations that fall below this baseline are often required to remediate gaps before a policy is issued or renewed. In some cases, insurers may bind coverage temporarily while remediation is underway, but exclusions and premium increases are common.
At a high level, insurers consistently evaluate five core areas:
Identity and access protection
Endpoint and network security
Data protection and backup resilience
Incident response preparedness
Ongoing monitoring and detection
Failure in any one area can materially impact coverage.
Identity-based attacks remain the most common and most successful intrusion method. Phishing, credential reuse, and password leaks continue to give attackers easy access to corporate environments.
Because of this, Multi-Factor Authentication is no longer viewed as an enhancement — it is viewed as non-negotiable.
Insurers expect MFA to be enforced consistently across:
Email platforms
Remote access and VPNs
Administrator and privileged accounts
Cloud applications and portals
This expectation applies regardless of organization size or industry.
A single compromised password can lead to widespread access, lateral movement, and ransomware deployment. MFA dramatically reduces this risk by blocking access even when credentials are stolen.
Organizations without MFA are increasingly seeing:
Coverage denials
Ransomware exclusions
Elevated premiums
Increased scrutiny during claims
Once attackers gain access, speed matters. The faster an organization can detect and contain malicious activity, the lower the eventual damage — and the lower the insurer’s exposure.
For that reason, insurers now expect active, continuously monitored protection across all endpoints and networks.
| Control | Expectation |
| Endpoint Detection & Response (EDR) | Deployed on all endpoints |
| Patch management | Regular, documented patching |
| Network segmentation | Limits lateral movement |
EDR provides visibility into suspicious behavior in real time, while patch management closes known vulnerabilities attackers routinely exploit. Network segmentation further limits how far an attacker can move if a device is compromised.
Organizations lacking these controls are often classified as high-risk due to the potential for rapid, uncontrolled ransomware spread.
Backups are often described as the last line of defense — and insurers now treat them that way.
Having backups is no longer sufficient. Insurers want evidence that backups are secure, isolated, and recoverable under real attack conditions.
| Requirement | What Insurers Look For |
| Encrypted backups | Data protected at rest |
| Offline or immutable copies | Cannot be altered or deleted |
| Regular testing | Proven recovery capability |
Ransomware operators increasingly target backups first. If backups are encrypted, deleted, or untested, organizations are left with little choice but to pay a ransom.
Insurers want confidence that recovery is possible without negotiation — and many ransomware claims are denied when that confidence does not exist.
No.
Most cyber insurers enforce a minimum control baseline before binding or renewing a policy. When gaps are identified, organizations may face:
Declined or delayed coverage
Ransomware-specific exclusions
Higher premiums and deductibles
Mandatory remediation prior to approval
Importantly, these determinations often happen during underwriting (not after an incident) which means preparation must happen well in advance.
We help organizations align their cybersecurity posture with what insurers actually require — not what outdated checklists suggest.
Our approach focuses on practical, defensible controls that reduce real risk and satisfy underwriters, including:
MFA deployment and identity governance
Enterprise-grade EDR and continuous threat monitoring
Immutable, encrypted backup architectures
Incident response planning and tabletop exercises
Cyber Insurance Readiness Assessments aligned to carrier expectations
The goal is not just compliance, but confidence — for leadership, insurers, and stakeholders.
Cyber insurance only works if your security posture supports it. If an incident occurs and required controls are missing, coverage may be limited or unavailable when it matters most.
📞 Call us for a cyber insurance readiness review — before an attack forces the conversation.