Cyber Insurance: What IT Needs to Know

Cyber insurance covers financial losses from data breaches, ransomware, and other cyber incidents — including breach notification costs, legal fees, ransom payments (where legal), and business interruption losses. As cyber incidents become more costly, cyber insurance has become an essential risk management tool for businesses. Insurers increasingly require specific technical controls before issuing policies or offering acceptable premiums. Common requirements: MFA on all remote access and email (this is often the single biggest factor), EDR on all endpoints, regular backups with offline/immutable copies, vulnerability scanning, security awareness training, and incident response plans. IT's role in the insurance process: complete security questionnaires accurately — misrepresentation can void coverage. Implement required controls before renewal. When an incident occurs, involve the insurance carrier early — they provide IR firms, legal support, and PR services. Keep documentation of your security controls (policies, scan results, training records) as evidence of due diligence. Review coverage annually as the threat landscape and business change.