Why Cyber Insurance Audits Matter More Than Ever
Cyber insurance providers are tightening their requirements. As claims surge from ransomware, phishing, and data breaches, insurers are demanding proof of cybersecurity hygiene before issuing or renewing policies. For small and midsize businesses (SMBs), this means being proactive—long before the audit request lands.
If you’re an SMB leader or IT decision-maker, understanding how to prepare is vital. This guide will walk you through the key controls, common gaps, and action steps to position your business as a low-risk, insurable partner.
What Is a Cyber Insurance Audit?
A cyber insurance audit is a formal review conducted by your insurer (or a third party) to verify your cybersecurity controls and risk posture. It typically occurs:
- Before policy issuance or renewal
- After a major claim
- During mid-term policy reviews
The goal? Ensure your business meets the minimum security requirements set by your insurer.
Key Areas Cyber Insurers Evaluate
1. Access Management
- Multi-factor authentication (MFA) for all admin accounts
- Strong password policies
- Role-based access controls
2. Endpoint Protection
- Antivirus and anti-malware on all devices
- EDR/XDR solutions for advanced threat detection
3. Email and DNS Security
- Phishing protection and email filtering
- SPF, DKIM, DMARC records in place
- DNS filtering to block malicious domains
4. Patch Management
- Regular OS and application updates
- Automated vulnerability scanning and remediation
5. Data Backup and Recovery
- Offline/offsite backups following the 3-2-1 rule
- Documented disaster recovery plan
- Regular backup testing
6. Security Awareness Training
- Employee phishing simulations
- Formal cybersecurity training program
7. Incident Response Readiness
- Written IR plan and breach notification procedures
- Regular tabletop exercises
Pre-Audit Checklist: Are You Ready?
| Control Area | Questions to Ask | Remediation Tips |
|---|---|---|
| MFA | Is MFA enabled on all admin logins and remote access tools? | Roll out MFA via Microsoft 365, VPN, and key SaaS tools. |
| Backups | Are backups encrypted and stored offsite? | Implement cloud backup with immutable storage. |
| EDR | Are all endpoints covered by an EDR/XDR solution? | Work with an MSP to deploy and monitor EDR. |
| Email Security | Are email authentication protocols active? | Check SPF/DKIM/DMARC settings via MxToolbox. |
| Training | Have users completed security awareness training in the last 6 months? | Launch a phishing simulation campaign. |
How SHIERTECH Helps You Prepare
At SHIERTECH, we specialize in helping businesses meet cyber insurance requirements with confidence. Our IT consultants:
- Conduct gap assessments and remediation
- Provide services for ongoing compliance
- Manage backup, endpoint, and identity solutions
- Deliver ongoing training and reporting
Whether you’re preparing for your first audit or responding to new policy terms, our team ensures your environment is secure, compliant, and defensible.
Common Mistakes That Could Cost You Coverage
- Waiting until audit time to remediate issues
- Ignoring MFA requirements for remote or legacy apps
- Overlooking employee-owned devices (BYOD)
- Failing to document incident response procedures
- Not validating third-party vendor security
Final Tips Before the Audit
- Document everything – Insurers want proof, not promises
- Centralize policies – Store security policies, training logs, and risk assessments in one place
- Engage your MSP early – Audits move fast. Don’t scramble.
Schedule Your Cyber Readiness Assessment Now
Don’t wait for a denial or rate hike. Schedule a complimentary Cyber Insurance Readiness Assessment with SHIERTECH today. Contact us!
Protect your business. Prove your defenses. Partner with SHIERTECH.