You might feel confident knowing your business has cyber insurance in place. It’s meant to protect you when something goes wrong, right?
Cyber insurance alone won’t stop an attack. It often won’t even pay if you weren’t properly protected to begin with.
“Cyber insurance is reactive. It’s the ICU—you only use it after the attack has taken your business down,” says Rob Schenk, Chief Security Officer at Intelligent Technical Solutions (ITS).
At ITS, we help small and mid-sized businesses prevent breaches before they happen with Managed Detection and Response (MDR): a service that provides 24/7 monitoring, threat detection, and fast incident response.
In this article, you’ll learn:
- What does (& doesn’t) cyber insurance do?
- What security solutions should you pair with cyber insurance?
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What does (and doesn’t) cyber insurance do?
Cyber insurance helps you recover financially from a breach. Depending on your policy, it may cover:
- Legal and regulatory fines
- Forensic investigation costs
- Ransomware payments
- Data restoration and business interruption
Cyber insurance does not prevent attackers from accessing your systems, encrypting your data, or leaking sensitive information – especially since cyberattacks are faster and more expensive than ever, averaging $4.45 million per breach and taking 204 days to identify.
Ransomware attacks are even worse as they cause an average of 16 days of downtime, cutting off revenue and customer access.
“Most executives believe insurance equals protection,” says Schenk. “But protection comes from what you do before the breach, not after.”
Insurers have even grown more selective. According to Marsh, underwriters now require proof of basic cybersecurity measures, including:
- Multi-factor authentication (MFA)
- Endpoint Detection and Response (EDR)
- Regular risk assessments
- Offline, tested backups
- An incident response plan
If you can’t prove you had those protections in place, your claim could be delayed, reduced ... or denied entirely.
What security solutions should you pair with cyber insurance?
To fully protect your business and keep your policy enforceable, you need to build a layered defense.
These are the key cybersecurity solutions you should have in place alongside your cyber insurance.
1. Multi-Factor Authentication (MFA)
Passwords alone can be stolen or guessed. MFA adds an extra layer of protection that blocks unauthorized access—even if someone has a valid login.
Most insurers now require MFA on all cloud accounts, admin logins, and remote access systems.
2. Endpoint Protection
Your laptops, desktops, and servers are often the first targets. Endpoint Detection and Response (EDR) tools help monitor behavior, detect threats, and isolate infected devices.
Go beyond basic antivirus. Choose EDR solutions that identify abnormal behavior, offer automated isolation, and integrate with broader monitoring tools.
3. Managed Detection and Response (MDR)
Even with strong defenses, attacks can still happen. MDR (Managed Detection and Response) gives you 24/7 threat monitoring, real-time detection, and expert incident response across your endpoints, cloud apps, and internal network.
MDR helps you detect and respond to threats quickly — limiting damage and showing your insurer that you're actively managing risk.
Schenk explains it this way:
“Think of MDR as the security operations center your business can’t easily staff on its own. We monitor, investigate, and respond in real time—so you don’t have to.”
READ: Antivirus vs. EDR vs. MDR: What are the Differences?
4. Cloud Security Monitoring
Most attacks now target cloud platforms like Microsoft 365, Google Workspace, and AWS. Without visibility into these systems, attackers can go unnoticed for weeks or even months.
Deploy monitoring tools that alert you to suspicious logins, email forwarding rules, file transfers, and privilege escalation.
5. Backup and Disaster Recovery Plans
If ransomware locks your files or an attacker deletes critical data, your only real recovery option is a clean backup. But not all backups are created equal—yours should be secure, tested, and accessible even if your systems are compromised.
Providers often ask how frequently you back up data, how it’s stored, and how long it takes you to recover operations.
READ: Disaster Recovery vs. Business Continuity vs. Incident Response Plans
6. An Incident Response Plan
The faster you respond to an attack, the less it costs you. An incident response plan gives your team a clear roadmap to contain threats, communicate internally, and restore operations.
Document key contacts, prioritize systems for recovery, and print hard copies so you can access them even during a ransomware event.
7. Security Awareness Training
Your employees are both your biggest vulnerability and your first line of defense. Regular security awareness training helps them spot phishing, avoid risky behavior, and report issues quickly.
Many insurers want to see documented proof that your team receives regular training—often quarterly or semi-annually.
READ: How Much Does Security Awareness Training Cost (& Is It Worth It?)
Ready to upgrade your cybersecurity beyond cyber insurance?
Insurance won’t alert you to a threat, stop ransomware, or protect your client data. It’s a safety net. Not a shield.
Pairing your policy with layered security gives you both defensive protection and financial backup. It also helps you stay in compliance with your provider, qualify for better coverage, and respond faster when something goes wrong.
“You don’t need every enterprise tool,” says Schenk, “but if you skip the basics—MFA, backups, MDR, monitoring—you’re leaving your business wide open.”
At ITS, we help businesses like yours implement practical security layers that satisfy insurance requirements—and actively reduce risk.
Don’t let your only plan be a payout.
Schedule a cybersecurity consultation with ITS to assess your risk, validate your protections, and see if ITS is the right partnership for your business.
MORE RESOURCES:
- Things to Prepare for Cyber Insurance and Why They're Important [2023]
- Why Cyber Insurance Costs are Rising (& How to Get Your Money’s Worth)
- How to Choose the Right Cyber Insurance for Your Business [Updated in 2023]
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