Revealing New Cyber Insurance Requirements: Is Your Business Vulnerable to Coverage Loss?

The cyber insurance landscape resembles a shifting mosaic, constantly rearranging itself akin to sand dunes amidst a desert storm. Faced with an ever-expanding array of threats and a surge in data breaches, insurance providers are recalibrating their insurance policies and elevating the standards for eligibility. Businesses that remain anchored in outdated paradigms risk being stranded in the cyber wilderness, bereft of essential coverage. Picture yourself marooned in the chill of this digital wasteland, devoid of vital support services such as public relations assistance, breach notification, credit monitoring, privacy counseling, forensic investigation, system recovery, ransomware negotiation, and a myriad of other costly provisions typically underwritten by cyber insurance policies today.

Envision a fortress meticulously constructed to withstand the onslaught of medieval weaponry, now confronting the arsenal of modern warfare. This analogy encapsulates the predicament confronting numerous enterprises in the realm of cybersecurity. Outdated defenses prove inadequate against the sophisticated stratagems employed by cyber adversaries. In response, insurance carriers are fortifying their positions to align with the exigencies of contemporary threats. Consequently, the prerequisites for securing cyber insurance coverage are undergoing a profound transformation, demanding greater resilience and adaptability from businesses. Failure to embrace these evolving standards leaves companies vulnerable to heightened risks in the digital realm, without the protective umbrella afforded by cyber insurance.

What Measures are Insurance Companies Tightening on?

Acquiring cyber insurance, especially ransomware insurance, feels akin to attempting entry into an exclusive VIP club with a counterfeit ID. Despite your stylish attire and confident demeanor, lacking the requisite credentials means you're simply not gaining admittance. Cyber insurance providers are assuming the role of gatekeepers in the cybersecurity realm, meticulously scrutinizing credentials at the entrance. To navigate past these gatekeepers, it's imperative not only to meet standard controls but also to showcase:

An Enhanced Backup Protocol

  • The backup system is managed using distinct credentials
  • Backup servers operate independently from the domain
  • Backup servers are segregated from the main network
  • Backups are preserved in an immutable format
  • Access to backup servers mandates Multi-Factor Authentication (MFA)

Integration of an Advanced Email Security Solution

  • The solution must proactively block executable attachments
  • The solution must preemptively halt macro-enabled Microsoft Office documents
  • Identifying and intercepting spam and phishing emails should be a core feature
  • The solution must be configured to actively monitor for suspicious links

Implementing an Endpoint Detection and Response (EDR) Solution

  • Deploy the EDR solution comprehensively across all endpoints, encompassing servers within the network.
  • Ensure the solution possesses the capability to autonomously identify, thwart, and launch investigations spanning the network.
  • The EDR solution should facilitate automatic detection and blocking of potential threats, initiating investigations seamlessly.

Implementation of Segmented Network Access Controls

  • Implement identity-based network access controls to regulate and authenticate user access.
  • Enforce Multi-Factor Authentication (MFA) protocols for network access, adding an extra layer of security.
  • Segregate access to sensitive resources within the network, limiting exposure.
  • Continuously monitor and evaluate network access to identify and address potential vulnerabilities promptly.

Utilizing MFA for Accessing Sensitive Data

  • Mandate the use of Multi-Factor Authentication (MFA) for accessing sensitive data, requiring at least two authentication factors.
  • Ensure the MFA system utilizes non-phishable, non-SMS-based second-factor authentication methods.
  • Employ a combination of authentication factors, including something the user knows, possesses, and is, for enhanced security.
  • Activate MFA for all instances of remote access and privileged access to fortify data protection measures.

Monitoring and Oversight of Sensitive Data Access

  • Recording and monitoring every instance of access to sensitive data, including user identity and timestamp
  • Prompt detection and notification of any anomalous or suspicious activities related to data security access
  • Conducting thorough audits and generating comprehensive reports on all interactions with sensitive data repositories

Segregation of Privileged Access from Regular User Accounts

  • Adhering to the principle of least privilege, granting only essential access rights to users based on their roles and responsibilities
  • Establishing distinct privileged accounts exclusively reserved for system administrators or personnel requiring elevated access levels
  • Enforcing a strict policy of regular rotation and revocation of privileged credentials to minimize the risk of unauthorized access or misuse.

Revoke Local Administrative Privileges for Non-Essential Users

  • Disable the ability for users to initiate software installations or make alterations to their system configurations.
  • Restrict access to sensitive resources and systems to authorized personnel only.
  • Enforce application control mechanisms or whitelist software solutions to ensure that only authorized programs are allowed to execute.
  • Utilize AppLocker or similar software restriction policies to block or mitigate the execution of unauthorized software.

Enhance Vulnerability Management and Attack Surface Assessment

  • Conduct regular scans to identify and address exploitable vulnerabilities within the system.
  • Prioritize the resolution of vulnerabilities based on their severity and potential impact.
  • Implement annual comprehensive penetration testing to evaluate the security posture of critical services.

In essence, failing to demonstrate to insurance providers that adequate controls are in place could result in denial of coverage. Therefore, it's imperative to implement robust security measures.

How to Swiftly Adapt Your Organization Ahead of Renewal?

The dynamic landscape of cyber security insurance requirements offers a distinctive chance for organizations to synchronize their cybersecurity stance with various regulatory frameworks like the California Consumer Privacy Act (CCPA), the California Privacy Rights Act (CPRA), the Virginia Consumer Data Protection Act (VCDPA), and the General Data Protection Regulation (GDPR), alongside industry-specific regulations such as HIPAA, GLBA, and FTC guidelines. By implementing controls that align with the standards outlined in these laws, organizations not only qualify for cyber insurance coverage but also foster a heightened level of trust and assurance among their clientele, vendors and stakeholders.

Teaming up with a reputable consultancy firm, such as BD Emerson, can aid organizations in ensuring compliance not just with the requirements of cyber insurance providers but also with the rigorous mandates delineated in privacy legislations. This partnership offers invaluable assistance in identifying and mitigating potential risks, implementing top-tier practices and protocols, and sustaining ongoing compliance. By adopting a comprehensive approach to cybersecurity, organizations not only fulfill the expectations of the insurance sector but also fortify the protection of sensitive data belonging to their customers and clients.

Introducing the BD Emerson – Blue INK Security Collaboration

At BD Emerson, we are dedicated to constructing holistic privacy and security programs that encompass every facet of an organization's requirements, from strategic planning to execution. Our approach involves closely collaborating with clients to grasp their distinctive needs and tailoring our services accordingly.

Our team comprises seasoned experts with extensive knowledge in navigating the intricate realm of privacy and security regulations. We assist organizations in identifying and mitigating potential risks, implementing industry best practices and protocols, and ensuring ongoing compliance. Furthermore, we possess a deep understanding of the specific controls and criteria that insurance company prioritizes, enabling us to aid organizations in meeting these standards efficiently and affordably.

In a bid to deliver unparalleled service and assist clients in meeting requirements for cyber insurance promptly and economically, BD Emerson has forged a strategic alliance with Blue INK Security. Renowned for its expertise in cybersecurity services, Blue INK Security specializes in assisting organizations in implementing and certifying the top ten controls mandated by insurance companies. Together, our partnership equips clients with the expertise and resources necessary to safeguard their sensitive data and fulfill the insurance industry's demands.

If your organization is seeking assistance in renewing its cyber insurance liability policy this year or needs to swiftly achieve compliance with new regulations and laws, we encourage you to contact us at to schedule a discovery call and receive a complimentary risk management and assessment today.

Revealing New Cyber Insurance Requirements: Is Your Business Vulnerable to Coverage Loss?

About the author



Managing Director


Drew spearheads BD Emerson's Governance, Risk, Compliance, and Security (GRC+Sec) division, where he channels his expertise into guiding clients through the labyrinth of Information Security, Risk Management, Regulatory Compliance, Data Governance, and Privacy. His stewardship is key in developing tailored programs that not only address the unique challenges faced by businesses but also foster a culture of security and compliance.


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