Cyber Insurance Isn’t a Safety Net—Unless You’re Compliant

Why Your Business Needs an Annual System Check-Up
By Tom Brennan, Proactive Risk
Cyber insurance is often seen as a financial safety net—a way to recover quickly after a breach, ransomware attack, or business disruption. But here’s the truth: your claim could be denied if your organization doesn’t meet the policy’s technical requirements.
Just like skipping your annual physical can lead to undetected health issues, skipping a third-party system check can leave your business exposed to costly surprises. At Proactive Risk, we recommend using the CIS Controls v8 Implementation Group 2 (IG2) as a baseline for these assessments—especially for mid-sized organizations with moderate complexity and sensitivity.

The Hidden Risk of Non-Compliance
Cyber insurance policies often include specific security requirements—multi-factor authentication, endpoint protection, access controls, and more. If these aren’t properly implemented or documented, your insurer may reject your claim.
Real-world example:
A mid-sized company lost over $200,000 to a business email compromise. Despite having cyber insurance, their claim was denied because they lacked adequate email filtering and couldn’t produce audit logs. The result? Funds earmarked for growth were diverted to cover the loss.

CIS Controls v8 IG2: Your Compliance Blueprint
CIS IG2 includes 20 prioritized controls designed to reduce risk and improve resilience. These controls cover:

• Secure configuration of hardware and software
• User access management
• Email and browser protections
• Incident response planning
• Audit log collection and review

A third-party system check validates that these controls are in place, functioning, and documented—giving you the evidence insurers require and the confidence your systems are secure.

Why a System Check Is Like a Medical Exam
Think of a system check as your organization’s cyber wellness exam. It’s not just about finding problems—it’s about preventing them. These assessments:

• Uncover hidden vulnerabilities
• Validate compliance with insurance policies
• Provide independent documentation for audits and claims
• Strengthen your relationship with IT service providers

Whether you're preparing for renewal, scaling operations, or responding to a breach, a system check ensures your business is resilient and insurable.

Action Plan: Stay Covered, Stay ConfidentHere’s how to get started:

1. Review your cyber insurance policy for technical requirements.
2. Map each requirement to CIS IG2 controls and assign internal owners.
3. Schedule a third-party system check annually to validate compliance.
4. Maintain a central repository of audit-ready documentation.
5. Ensure your IT provider supports compliance monitoring and reporting.

Final Thought
Cyber insurance is only as strong as the systems behind it. Don’t wait until a breach exposes gaps in your coverage. Treat cybersecurity like your health--get a check-up before symptoms appear.
At Proactive Risk, we help businesses align with CIS IG2 and conduct thorough third-party assessments that protect your operations, reputation, and bottom line.
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Ready to schedule your system check?