Cyber Insurance is Available and Premiums are Competitive – But Qualifying for Coverage is Getting More Demanding
Cyber insurance remains one of the most important protections for today’s businesses, and also one of the most misunderstood.
Yes, coverage is still available.
No, it’s not as simple as it used to be.
Over the past few years, cyber claims have increased in frequency, severity, and complexity. Ransomware attacks, social engineering losses, vendor outages, and data breaches are no longer rare events. In response, insurers have adjusted how they underwrite cyber risk – and they’re asking tougher, more detailed questions than ever before.
For business owners and executives, that shift can feel frustrating. But it also presents an opportunity.
Organizations that understand what carriers are looking for and can demonstrate strong cyber hygiene are better positioned to secure coverage, improve terms, and avoid last-minute renewal surprises.
Why Cyber Underwriting Has Changed
Cyber insurers aren’t just evaluating your revenue or industry anymore. They’re assessing your organization’s preparedness to prevent, detect, and respond to incidents.
In many cases, underwriting outcomes now hinge on a handful of core controls. If those controls are missing or inconsistently applied, carriers may respond with:
- Coverage restrictions or limits
- Higher deductibles or coinsurance
- Increased premiums
- Or, in some cases, a decision to not quote at all
This doesn’t mean cyber insurance is “going away.” It means insurers want clearer evidence that risk is being actively managed.
The Cyber Controls Insurers Care About Most
While every carrier is different, there are several controls that consistently carry the most weight during underwriting:
Multi-Factor Authentication (MFA)
Insurers increasingly expect MFA to be in place for remote access, email, and privileged accounts. This single control can significantly reduce the likelihood of credential-based attacks.
Secure, Tested Backups
It’s not enough to say you back up data. Underwriters want to know:
- Are backups isolated from your network?
- Are they tested regularly?
- Can they be restored quickly?
Endpoint Detection & Response (EDR)
Traditional antivirus is no longer sufficient on its own. Many carriers expect EDR or advanced endpoint monitoring to help detect and contain threats early.
Incident Response Planning
Having a documented incident response plan – and knowing who is responsible for what during an event – signals preparedness and can materially affect underwriting outcomes.
Vendor and Third-Party Risk Awareness
Cyber losses don’t always start inside your organization. Insurers are paying closer attention to how businesses evaluate and manage vendor access and data dependencies.
Why Preparation Matters Before Renewal
One of the biggest mistakes we see is waiting until a cyber renewal is imminent to address underwriting concerns.
By that point, options may be limited.
A proactive review, ideally several months before renewal, allows time to:
- Identify gaps that could impact coverage
- Prioritize improvements that insurers value most
- Present your organization accurately and confidently to the market
This approach often leads to smoother renewals and more productive conversations with carriers.
Cyber Insurance Works Best as Part of a Broader Risk Strategy
Cyber coverage isn’t a substitute for strong controls – and insurers no longer treat it that way. Instead, it functions best when paired with thoughtful risk management, clear documentation, and realistic expectations about today’s threat landscape.
At BakerHopp Insurance Group, we view cyber insurance as a collaborative process. Our role is to help you understand how carriers evaluate risk, translate technical requirements into practical next steps, and advocate for coverage that aligns with how your business actually operates.
Let’s talk before your next renewal.
If you’d like to understand how your current cyber controls may be viewed by insurers – or want to prepare well ahead of your next renewal – we’re here to help.
Schedule a conversation with us to walk through your cyber readiness, coverage structure, and underwriting considerations. A short discussion now can prevent costly surprises later.