As businesses continue to face rising cybersecurity threats, protecting your company’s digital assets is no longer a "nice to have"—it’s a must. In 2025, cyber insurance has become a critical tool for managing risk, offering financial protection against the many challenges that come with data breaches, ransomware, and other online attacks.
But with the landscape constantly changing, how do you make sure you have the right coverage?
Don't want to read the article? Watch the full recording below.
Be sure to register here for the "Ntiva Tech Mastery On-Demand Webinar Series"
In this blog, we’ll break down what you need to know about purchasing cyber insurance, so you can feel confident that your business is well-protected. Drawing from a recent webinar with the experts at FifthWall Solutions, we’ll share practical insights to help you navigate your options, make informed decisions, and ensure your business is ready for whatever comes next.
Cyber insurance has come a long way. A few years ago, the process was simple—basic coverage with minimal questions. Fast forward to 2025, and the landscape has shifted dramatically. Cyber threats have evolved, and so have the requirements for businesses looking to stay protected. It’s no longer just about having insurance; it’s about meeting certain security standards to get the best coverage at the best price.
Today, insurers are paying close attention to the security measures you have in place. Things like Multi-Factor Authentication (MFA) and Endpoint Detection and Response (EDR) aren’t just "nice-to-haves" anymore—they’re often requirements. These tools help safeguard your business by adding extra layers of protection, and insurers know that businesses with these controls are less likely to experience severe cyber incidents. The result? Better security means lower risk, which can translate to lower premiums for your business.
As a business leader, staying on top of these changes is essential. Cyber insurance policies are becoming more complex, and if you’re not keeping up, you could end up overpaying for coverage or, worse, leaving your business exposed. Regularly reviewing your policy and security measures will help you make sure you’re getting the protection you need—without breaking the bank.
But here's the thing: It’s not just about checking off security boxes. To make the best decisions for your business, education is key. Instead of relying on fear-driven sales tactics, it’s important to understand the risks and options available to you.
When it comes to cyber insurance, fear-based selling is all too common. You’ve probably heard it before—warnings about devastating attacks, massive fines, and sky-high ransom demands. While the risks are real, making decisions based on fear can leave you feeling overwhelmed and pressured. Instead, what you need is a clear understanding of how cyber insurance works and what your business truly needs to stay protected.
The key is understanding the types of risks your business faces and how different coverage options address those risks. For instance, does your business handle sensitive customer data? If so, you may need coverage that protects against data breaches. Are you worried about the downtime that a cyberattack could cause? Make sure your policy covers business interruption and loss of income.
Here are a few tips to guide you before purchasing cyber insurance:
--Know your risks: Every business is different, so it's essential to evaluate your specific vulnerabilities. Whether it’s protecting customer data, preventing ransomware, or ensuring operational continuity, understanding your risk profile will help you choose the right coverage.
--Understand your coverage options: Not all cyber insurance policies are created equal. Some focus primarily on covering ransom payments, while others offer broader protection, including recovery costs, legal fees, and public relations efforts. Make sure you choose a policy that aligns with your unique needs.
--Ask questions: Don’t be afraid to dig into the details. What’s covered, and what’s not? Are there exclusions you should be aware of? How does your policy handle third-party vendors? The more you know upfront, the fewer surprises you’ll encounter later.
By focusing on education and understanding the ins and outs of cyber insurance, you can make well-informed decisions that protect your business without falling into the trap of fear-driven sales.
Up next, let’s dive into the real costs of a cyberattack—and why focusing solely on ransom payments could leave you vulnerable.
RELATED READING: Navigating Cyber Insurance: Everything You Need to Know
When most people think of cyberattacks, the first thing that comes to mind is ransom payments. While ransomware can be a significant cost, focusing only on the ransom can lead businesses to underestimate the true financial impact of an attack. In reality, the cost of a cyberattack goes far beyond the ransom itself.
Consider these additional costs:
Given these wide-ranging costs, it's crucial to have the right coverage in place to protect your business. While ransom payments are a factor, your insurance should also cover business interruption, legal fees, recovery expenses, and more. This holistic approach to cyber insurance ensures that you’re prepared for the full impact of an attack.
To evaluate your risks, consider conducting a business impact assessment (BIA). This process helps you identify which areas of your business are most vulnerable and how much a cyberattack could cost you in terms of downtime, lost revenue, and reputation. With this knowledge, you can make better-informed decisions about the level of coverage your business needs.
While cyber insurance is an essential part of protecting your business, it doesn’t have to be a huge expense. In fact, by improving your security measures, you can often lower your premiums and reduce the chances of an expensive claim down the line. The good news? Implementing smart security practices like Multi-Factor Authentication (MFA) and phishing training doesn’t just protect your business—it can save you money.
Many insurers are now rewarding businesses that demonstrate strong cybersecurity. For example, businesses that adopt MFA, which adds an extra layer of security to user logins, often see a reduction in their insurance premiums. The same goes for implementing endpoint detection and response (EDR) systems or regularly running phishing awareness training for employees. These measures significantly lower your risk of a breach, making you a more attractive and lower-risk client to insurers.
Let’s take a look at how this works in practice:
A small healthcare business implemented MFA across its network, ensuring that any sensitive data was protected by multiple layers of security. When their policy was up for renewal, they saw a 15% reduction in their cyber insurance premiums because the insurer recognized the reduced risk of unauthorized access to sensitive information.
A mid-sized company introduced monthly phishing training for employees, drastically reducing the likelihood of falling victim to phishing scams—one of the most common entry points for cyberattacks. As a result, their insurance provider not only lowered their premiums by 10%, but also offered a deductible reduction for claims related to employee error.
By investing in these proactive security measures, businesses not only reduce their chances of experiencing a cyberattack but also position themselves to negotiate better terms with their insurance providers. Over time, these savings can add up, offsetting the cost of implementing new security tools.
The long-term payoff comes from more than just lower premiums. Improving your cybersecurity means you're less likely to face a damaging and costly attack in the first place. The less risk your business presents, the more flexibility you’ll have when negotiating your coverage—and the fewer claims you’ll have to make.
As cyber threats become more sophisticated, insurers are tightening their requirements for coverage. In 2025, it's not just about having basic security—it's about meeting advanced criteria that demonstrate a proactive approach to managing risk. So, what exactly are insurers looking for?
We've already discussed how features like Multi-Factor Authentication (MFA) and Endpoint Detection and Response (EDR) can help lower premiums by reducing risk. But there's more to consider when aiming for comprehensive protection.
Here are the key security features insurers are prioritizing in 2025:
Managed Detection and Response (MDR): This takes EDR further by providing 24/7 monitoring through cybersecurity experts who can quickly detect and respond to threats. Insurers recognize this as a valuable layer of protection, particularly for businesses with sensitive data. With MDR in place, you're more likely to reduce premiums due to the lower chance of undetected attacks.
Privilege Access Management (PAM): PAM controls and limits access to critical systems and data by ensuring that only authorized personnel have administrative rights. This greatly reduces the risk of insider threats or accidental data breaches, a major concern for insurers. Businesses that implement PAM are more likely to receive favorable terms, especially if they handle confidential or sensitive information.
By integrating these advanced security tools into your risk management strategy, you'll not only meet insurer requirements but also lower your cyber risk profile—leading to more competitive premiums and better coverage.
To stay ahead of these requirements and avoid higher premiums or reduced coverage, consider these actionable steps:
By preparing your business now, you’ll not only be ready to meet insurer demands, but you’ll also be better positioned to protect your company from the rising tide of cyber threats. Staying compliant with these security requirements will help keep your premiums lower and your business safer.
Cyber insurance is complex, but working with experts like Ntiva and FifthWall Solutions can ensure your business is fully protected. We'll help tailor coverage, optimize security, and lower premiums, so you’re prepared for evolving cyber threats. Be proactive—review your security measures, involve key decision-makers, and ask questions about coverage gaps and savings.
Now is the time to act. Review your current policies, assess your security, and consult experts to stay protected. Don’t wait for a cyberattack—get ahead of the risks today!