Cyber Insurance Readiness—What Underwriters Look for (and How to Prepare)
- Cybersecurity Consultant Brent Gallo
- Sep 23
- 3 min read
Updated: Oct 2
Cyber insurance has shifted from a low-cost add-on to a heavily scrutinized risk instrument. Premiums are rising, claims are being denied, and underwriters now demand evidence of security maturity before granting or renewing policies. For small businesses, contractors, universities, and healthcare providers, failing to meet these expectations can mean unaffordable premiums—or no coverage at all. Underwriters commonly require Multi-Factor Authentication (MFA), reliable backups, Endpoint Detection & Response (EDR/MDR), incident response planning, employee training, and continuous monitoring. Many of these overlap with CMMC, NIST CSF, and CIS Controls, making insurance readiness and compliance readiness two sides of the same coin. This guide unpacks what underwriters are looking for, how to prepare your organization with defensible evidence, and where the overlaps with compliance frameworks lie. Use the included checklist to get audit- and insurance-ready—before your renewal date arrives.
Why Cyber Insurance is Changing
- Rising claims: Ransomware payouts are high, and insurers are limiting exposure.
- Market tightening: Many providers now exclude coverage for common attack types.
- Underwriting scrutiny: Insurers require proof of baseline controls, not just self-attestation.
- Contractual dependencies: Some bids, especially government and higher ed, now require proof of insurance.
What Underwriters Actually Look For
• Multi-Factor Authentication (MFA): Required for privileged and remote access. Overlaps: NIST 800-171 IA-2, CIS Control 6.
• Backups and Recovery: Verified, tested, and offline backups. Overlaps: NIST CP-9, CIS Control 11.
• Endpoint Detection & Response (EDR/MDR): Must be deployed on all endpoints. Overlaps: NIST SI-3, CIS Control 8.
• Incident Response Plan: Documented, tested annually (tabletop exercise recommended). Overlaps: NIST IR family, CMMC IR.L2-3.
• Employee Security Training: Annual phishing and awareness campaigns. Overlaps: NIST AT-2, CIS Control 14.
• Patch & Vulnerability Management: Timely patching; documented vulnerability scans. Overlaps: NIST RA-5, CIS Control 7.
• Continuous Monitoring: SIEM or managed detection service for logs. Overlaps: NIST AU-6, CIS Control 8.
Common Pitfalls in Cyber Insurance Applications
- Checkbox mentality: Claiming MFA or backups exist without proof.
- Stale documentation: Outdated IR plans or policies undermine credibility.
- Partial coverage: EDR deployed only on servers, not laptops.
- Untrained workforce: Neglecting security training increases claims risk.
- Late renewals: Waiting until 60 days before renewal to prepare evidence.
How to Prepare (Step-by-Step)
1. Review your current policy and renewal terms. Identify exclusions and coverage gaps.
2. Map insurer requirements to your compliance frameworks. Use NIST/CMMC/CIS as your baseline.
3. Gather artifacts and evidence. Policies, logs, training records, and incident reports.
4. Conduct a mock underwriting review. Have your vCISO or security lead assess readiness.
5. Close gaps before renewal. Implement MFA, test backups, update IR plan, and retrain staff.
6. Package evidence into a Cyber Insurance Readiness Pack. Present it proactively to your broker.
Checklist: Cyber Insurance Readiness
- MFA enforced across all accounts.
- Backups tested and documented.
- EDR/MDR deployed on all endpoints.
- Incident response plan updated and tested.
- Annual security awareness training completed.
- Vulnerability scans performed and remediated.
- SIEM or monitoring in place with logs retained.
- Policies and evidence packs updated within the last 12 months.
Neutral Standards to Reference
- NIST Cybersecurity Framework (CSF)—used by insurers for maturity benchmarking.
- NIST SP 800-171 / CMMC Assessment Guides – compliance baseline for contractors.
- CIS Controls v8 – practical control set insurers trust.
- HHS HIPAA Security Rule – healthcare-specific insurance expectations.
Conclusion & CTA
Cyber insurance readiness is no longer about filling out a questionnaire. Underwriters expect evidence of security maturity, and they increasingly align their requirements with established frameworks like CMMC, NIST, and CIS.
By preparing MFA, backups, EDR, IR plans, training, and monitoring—supported with documented evidence—you not only strengthen your insurance application but also reduce compliance and bid risk.
Download our Cyber Insurance Readiness Checklist to prepare your organization. Learn how Hire A Cyber Pro delivers vCISO services, compliance alignment, and insurance-ready evidence. Book a call to learn more.
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