If your business insurance premiums have jumped in the past two years, you’re not alone. Cyber insurance in particular has seen 50-100% premium increases for many small businesses. The reason: insurers are paying out more claims than ever, and they’re tightening requirements in response.
The good news: the same IT improvements that lower your premiums also protect your business. It’s not wasted spending – it’s investment that pays off twice.
What Insurers Are Requiring Now
Cyber insurance applications in 2025 ask detailed questions about:
- Multi-factor authentication – Is MFA enabled on email, VPN, and admin accounts? (If no, many insurers won’t even quote you)
- Endpoint protection – Do you have EDR/antivirus on all devices?
- Backup practices – Are backups offsite, encrypted, and tested?
- Patch management – How quickly do you apply security updates?
- Email security – Do you have advanced phishing protection?
- Employee training – Do you conduct security awareness training?
- Incident response plan – Do you have a documented plan?
- Access controls – Do you follow least-privilege principles?
How Better IT Lowers Premiums
Insurers price risk. If you can demonstrate strong security controls, you’re a lower risk – and you get better rates. Specifically:
- MFA everywhere – This alone can reduce premiums 10-20% with some carriers
- 24×7 monitoring – Shows you detect threats proactively, not just reactively
- Tested backups – Reduces the insurer’s exposure to ransomware payouts
- Documented policies – Demonstrates organizational commitment to security
- Employee training records – Shows you’re addressing the human factor
The Double Benefit
Every dollar you spend on proper IT security:
- Reduces your actual risk of a breach (avoiding the $120K+ average cost)
- Reduces your insurance premiums (ongoing savings)
- Makes you eligible for coverage you might otherwise be denied
- Satisfies client and partner security requirements
Getting Your Application Right
Many small businesses answer cyber insurance applications inaccurately – either overstating their controls (creating liability) or understating them (paying higher premiums). We help clients document their actual security posture accurately, and implement any controls needed to qualify for better rates.
If your cyber insurance renewal is coming up and you want to be in the best position possible, start the conversation now – not the week before your application is due.
Need IT help? Seashore IT provides managed IT, cybersecurity, and compliance for businesses with 1-250 employees across the Western US. Call 844-867-1587 or email info@seashoreit.com.
Seashore IT – Your transparent IT partner, aligned to your goals, embedded in your success.