Your Cyber Insurance Policy is About to Become Useless (And Your IT Provider Knows Why).

Introduction:
Paying for cyber insurance? You may be shocked to learn that many small business claims are denied — not because of the attack itself, but because of hidden technical requirements buried in the fine print. As insurers tighten their standards, many companies are discovering too late that their coverage is practically worthless.

Main Article:
Cyber insurers are losing billions due to the relentless rise in ransomware and data breaches. To stop the bleeding, they’ve changed the rules. Policies that once required little more than a signed form now demand detailed proof of compliance with strict cybersecurity measures — before an incident even happens.

Today’s cyber insurance process is no longer a simple questionnaire; it’s a full-scale audit. The burden of proof now lies with you, the policyholder. When a cyberattack occurs, you must show logs, reports, and documentation proving that every system met the insurer’s technical standards prior to the incident. If you can’t prove it, they won’t pay.

Real-Life Example:
A local accounting firm suffered a ransomware attack that froze its client database. When they filed a claim, the insurer denied it — citing that one remote admin account did not have multi-factor authentication enabled. Even though the firm had MFA for email and their primary software, that single gap was enough to void the entire claim.

Why It Matters:

• Cyber insurance claims are now subject to rigorous compliance verification
• Even one missing security control can invalidate your policy
• Protecting your business means aligning IT practices with insurance requirements
• Proactive audits help you identify gaps before they cost you financially

Takeaway:
There are three common gaps that lead to claim denials: incomplete MFA coverage, inadequate or untested backups, and missing Endpoint Detection and Response (EDR) solutions. Insurers now expect all remote access points to have MFA, backups to be segmented and verifiable, and EDR installed on every device. Meeting these standards isn’t optional anymore — it’s the foundation of valid coverage.

Conclusion:
Your cyber insurance policy should be a safety net, not a gamble. ITG helps businesses identify compliance gaps, deploy the right protections, and ensure that their policies actually deliver when it matters most. Don’t wait until your claim is denied — call us today at 518-379-4881 to schedule a full security assessment and lock in real coverage confidence.