A cyber insurance broker can help businesses navigate the complex waters of policy exclusions, premium negotiations, and the submission process.

In the vast waters of the digital age, cyber threats hide among the waves like pirates. The need for robust cyber insurance is more pressing than ever. A cyber insurance broker can help businesses navigate the complex waters of policy exclusions, premium negotiations, and the submission process. Experienced brokers aim to ensure that companies are insured and resilient against growing cyber risks.

Businesses looking to engage with new clients and new third-party suppliers should seek cyber insurance that protects from contractual risk transfer during breaches. However, understanding which cyber insurance policy provisions are suitable for their business can be a challenging task.

Insurance Brokers are Your Ally in Cyber Insurance Qualification

Experienced brokers can engage with multiple insurance markets domestically and internationally. These brokers understand their clients’ micro and macro challenges in the cyber insurance marketplace. They also know their specific controls, helping to prepare their clients to qualify for insurance. Qualified insurance brokers can support their clients throughout the underwriting process in several ways, such as reviewing a cyber insurance application to detect possible gaps in controls that the cyber insurers may flag. Skilled brokers can find these gaps and help clients address them before the application reaches the underwriter’s desk to avoid higher premiums or denial of coverage.

Marsh identifies 12 critical cybersecurity controls that most cyber insurance markets look for during underwriting. Each control adds value to a client’s program. When these controls combine, they can strengthen an organization's ability to qualify for cyber insurance at a favorable premium.

1. Expertise in multi-factor authentication (MFA) for access

Knowledgeable insurance brokers understand the intricacies of MFA and its significance in the cyber insurance application process. Implementing robust MFA protocols is crucial in mitigating risks and qualifying for comprehensive cyber insurance with full limits for extortion coverage.

2. Guidance on email and web security measures

Brokers are well-versed in the required standards for email filtering and web security that insurers analyze when underwriting a risk. Brokers can advise on best practices to help firms strengthen their cybersecurity posture—a key area for insurers when evaluating coverage eligibility.

3. Insight on secured data backup systems

Brokers emphasize the importance of secured, encrypted, and regularly tested backups. Showing that a company can recover from data breaches in a reasonable time frame is often a prerequisite for obtaining favorable insurance terms.

4. Strategic Privileged Access Management (PAM)

Brokers help businesses establish PAM strategies essential for protecting sensitive data and systems. PAM is a significant data point for insurers, as they prefer clients who take proactive steps to minimize insider threats.

5. Advocacy for strong Endpoint Detection and Response (EDR)

Insurance brokers advocate for adopting robust EDR solutions that efficiently reduce the incident response time and contain breaches. These are among the factors that insurance carriers weigh heavily in business interruption coverage.

6. Assistance with patch and vulnerability management

Brokers assist clients in understanding the value of diligent patch management and vulnerability remediation processes. Learning these processes displays a company's commitment to cybersecurity maintenance—an essential aspect that insurers evaluate.

7. Preparation for cyber incidents

Brokers work with businesses to ensure they have internal or external specialists to develop and test incident response plans. Insurers often look for well-prepared clients. Skilled brokers know how to position these plans to highlight a firm’s readiness.

8. Training and testing for cybersecurity awareness

Brokers know that regular cybersecurity training and phishing tests are crucial in building a culture of cyber awareness—a trait that insurers find appealing in businesses seeking coverage.

9. Consultation on hardening techniques

Brokers can introduce clients to firms that can guide hardening techniques, such as remote desktop protocol mitigation. Demonstrating efforts to reduce potential entry points for cyberattacks is attractive to insurers.

10. Monitoring and network protections

Insurance brokers can help pair clients with knowledgeable firms that implement comprehensive logging and monitoring strategies. These implementations show insurers the firm's commitment to real-time threat detection.

11. Advising on end-of-life systems

Brokers help companies understand the importance of the risks associated with outdated systems by recommending they are replaced or adequately protected—a strategy that insurers favor.

12. Vendor and digital supply chain risk management

Finally, sharp-witted brokers can help clients understand the complexities and effectively manage third-party risks. By proactively planning for third-party risks, businesses can secure dependent business interruption coverage within their cyber insurance policy.

The undeniable importance of insurance brokers

In the current landscape, where cyber resilience is as crucial as protection, insurance brokers should do more than sell policies. As strategic consultants, risk assessors, and educators, brokers can guide their clients through the complex prerequisites of cyber insurance qualification. Their knowledge and foresight in aligning a company's cybersecurity controls with insurance requirements are invaluable. In the face of mounting cyber threats, insurance brokers are reliable partners in securing cyber insurance.

No question about cybersecurity is too small.

Contact us today to learn more about our Digital Forensics and Incident Response (DFIR) services.

Steve Ramey has spent the past two decades helping clients protect, investigate, and respond to events involving their digital interests. He has led hundreds of data breach investigations, assessed incident response and security programs, and successfully advised organizations through extortion negotiations.

Marc Schein is a certified risk manager, insurance counsel and commercial lines coverage specialist, and national co-chair of cyber risk practice at Marsh McLennan Agency. He assists clients by customizing comprehensive commercial insurance programs that minimize the burden of financial loss through cost-effective transfer of risk. Mark's risk management experience includes cybersecurity, cyber insurance, errors and omissions, technology errors and omissions, directors and officers, employment practices liability