Why "Good Enough" Security Isn't Enough for Cyber Insurance Anymore

Cyberattacks are the ultimate uninvited guests. They don't knock; they kick the door down, often leaving a trail of encrypted files and operational chaos in their wake. For a modern business, the question isn't just "How do we fix this?" but "Who is paying for this?"

This is where cyber insurance has shifted from a "nice-to-have" luxury to a fundamental pillar of risk management. However, there is a catch: holding a policy is not a guaranteed "get out of jail free" card.

Understanding the Safety Net: What Cyber Insurance Actually Does

Think of cyber insurance as a specialized financial buffer designed to absorb the shock of a digital catastrophe. While every policy varies, a comprehensive plan typically addresses two fronts:

1. First-Party Coverage: This covers your direct costs—data restoration, hardware repair, lost income during downtime, and even the high costs of forensic investigators to find out how the "thief" got in.

2. Third-Party Coverage: If a breach exposes customer data, this covers your legal defense, settlements, and the regulatory fines that often follow.

The Reality Check: In today's market, insurers are no longer just "selling policies." They are managing their own risk. If your business is viewed as a high-liability "burning house," they either won't cover you or will deny your claim when you need it most.

The Fine Print: Why Claims Get Denied

The biggest misconception in the business world is that a policy covers you regardless of your behavior. In reality, cyber insurance is a contract of maintenance. If you claim you have certain security measures in place on your application but fail to maintain them, the insurer may see that as a breach of contract.

Common "deal-breakers" that lead to denied claims include:

• The "MFA" Gap: If you told your insurer you use Multi-Factor Authentication (MFA) but it wasn't active on the specific account that was compromised, expect a denial.

• Negligent Patching: Running "End-of-Life" software or ignoring critical security updates for months is often viewed as "failure to maintain" your digital environment.

• Documentation Deficits: If you can't prove when your last backup occurred or how you responded to an alert, you leave the door open for the insurance company to contest the payout.

Your Pre-Flight Checklist: Meeting the Underwriter’s Standards

To ensure your business is actually "insurable" and your claims are bulletproof, insurers now look for a specific set of technical "must-haves." At Burk I.T., we focus on these core pillars:

Requirement	Why It Matters
MFA Everywhere	It’s the single most effective way to stop credential theft.
Immutable Backups	Backups that cannot be deleted or changed by ransomware are your last line of defense.
Endpoint Detection (EDR)	Modern antivirus isn't enough; you need tools that watch for suspicious behavior in real-time.
Incident Response Plan	You need a "fire drill" for your data so you don't panic when an actual breach occurs.
Security Awareness Training	Your team is your first line of defense—or your weakest link.

How Burk I.T. Secures Your Policy (And Your Business)

Navigating the technical requirements of an insurance application can feel like learning a second language. That’s where we come in. Burk I.T. doesn't just "fix computers"; we align your entire technology stack with the rigorous standards required by modern underwriters.

We help you document your processes, harden your infrastructure, and provide the ongoing monitoring that proves to your insurer—and your clients—that you take security seriously.

Don't wait for a renewal notice to find out your security is lacking.