Cyber insurance can give a business valuable financial protection after a cyberattack. Getting that protection, however, involves more than completing an application and paying a premium. Insurers want to understand how well your business protects its systems, data, and employees against common cyberthreats.
This is where the cyber insurance security review comes in. As part of the application or underwriting process, insurers may ask businesses to demonstrate the security measures they have in place. Questions about passwords, backups, employee access, software updates, and incident response can expose gaps that may affect coverage or policy terms.
While this review may seem like another hurdle in securing cyber insurance, it also presents an opportunity to strengthen your business’s defenses. By examining your current security practices through the lens of an insurer, you can identify weaknesses, address potential risks, and better prepare your business for the review.
To prepare, focus on these seven key elements of your cybersecurity program:
1. Multifactor authentication
Multifactor authentication (MFA) adds another verification step after a user enters a password. It can include a code, an authentication app, a security key, or another form of verification.
Insurers often ask about MFA because compromised passwords can allow unauthorized access to business accounts. Requiring another form of verification makes stolen credentials insufficient on their own to access an account.
A security review should look beyond whether your company has MFA available. Check which accounts actually require it. Email, remote access, cloud applications, and administrative accounts deserve particular attention because they can provide access to sensitive information or critical systems.
Pay attention to exceptions, too. An account without MFA can create a serious weakness if it gives an employee, vendor, or administrator access to important business resources.
2. Backup and recovery practices
A backup is a separate copy of important business data that can help restore information after an incident. A recovery plan explains how your company will restore systems and resume normal operations.
However, having backups does not automatically mean your business can recover from a cyberattack. A backup could be incomplete, outdated, inaccessible, or difficult to restore, making recovery difficult and even sometimes impossible.
During a cyber insurance security review, examine what your company backs up, how frequently backups run, where copies are stored, and who can access them. Regular recovery testing also matters. A test can uncover missing files, failed backups, or a recovery process that takes much longer than expected.
Keep records of those tests. Documentation gives your team evidence that the backup and recovery process works and can support your answers during an insurance review.
3. Endpoint protection and software updates
Endpoints are the devices your business uses to connect to its network, such as employee laptops, office computers, and company servers. When these devices run outdated programs or lack proper security measures, they can become entry points for cyberattacks.
During the review, check whether your company’s devices have up-to-date security software and whether it is working as intended. Remember to also check laptops used by remote employees.
4. Access controls and employee accounts
Access controls determine which employees can use particular systems, applications, and information. Granting permissions according to job responsibilities reduces the number of accounts that could expose sensitive resources.
A security review should examine who can access financial information, administrative functions, cloud applications, and other critical resources. Check that former employees no longer have access to company systems and that employees who have changed roles have the appropriate permissions for their current responsibilities. Outdated access permissions can leave sensitive information exposed to people who no longer need it.
5. Email security and employee awareness
Email remains a common entry point for attacks such as phishing and business email compromise. Attackers may impersonate an executive, a vendor, a customer, or a financial institution to convince an employee to disclose important information or transfer money.
Email security tools can filter suspicious messages, but technology cannot replace employee awareness. Employees should be able to recognize common warning signs, such as unexpected payment requests, unusual login notifications, unfamiliar attachments, or messages that create pressure to act quickly. They also need a clear process for reporting suspicious emails.
A cyber insurance security review should therefore consider both technical protections and employee training. Check how often employees receive security awareness training and how your company handles suspicious messages. If your organization conducts phishing simulations, keep records of participation and follow-up training. Those records can demonstrate how your business prepares employees to recognize and respond to cyberthreats.
6. Incident response planning
An incident response plan outlines what your business will do after discovering a cybersecurity incident. Your plan should identify the people responsible for responding to an incident and explain how they will share information with one another, notify management, and coordinate recovery efforts. It should also account for outside resources, including your IT provider, legal counsel, cybersecurity specialists, and insurance carrier.
Pay close attention to your insurance policy's notification requirements. Some policies require prompt notice after certain incidents. Your response plan should identify who is responsible for notifying the insurer and what information must be provided.
7. Documentation and evidence
Documentation often receives less attention than the security controls themselves. Suppose an insurance questionnaire asks whether your business uses MFA, maintains backups, provides employee training, or has an incident response plan. A simple "yes" may not tell the full story. Your team should know which systems each control covers and have supporting records available.
Clear documentation helps managers understand which security measures are in place, how consistently those measures are applied, and where improvements may be needed. For example, access review records can show whether employees have the right permissions, while backup test results can reveal problems with data recovery. Reviewing these records helps managers identify gaps, prioritize corrective actions, and provide evidence of their security practices during a cyber insurance review.
Kortek can help assess your technology environment, identify security gaps, and recommend practical steps to better prepare your business for a cyber insurance security review. Contact us today to help your business meet cyber insurance security requirements and navigate the review process with greater confidence.