Time to Renew Your Cyber Insurance? 5 Critical Factors to Consider
Is it time to renew your cyber insurance? This critical question faces many businesses today as digital threats evolve at an unprecedented pace. Cyber insurance renewal has become significantly more complex over the past few years, with carriers implementing stricter requirements and premiums rising in response to the increasing frequency and severity of cyberattacks. At Velocity Solutions, we understand the challenges businesses face when navigating the cyber insurance marketplace, and we’re here to help you make informed decisions.
Why Cyber Insurance Renewal Deserves Your Attention Now
The cyber threat landscape has transformed dramatically since you last renewed your policy. Ransomware attacks have increased by 150% in the past year alone, with the average ransom payment exceeding $250,000. Meanwhile, insurance carriers have responded by tightening underwriting requirements and increasing premiums—sometimes by as much as 40-60% for businesses without robust cybersecurity measures in place.
Your cyber insurance renewal provides an excellent opportunity to reassess your organization’s overall security posture and ensure you’re adequately protected against emerging threats. Here are five critical factors to consider as you approach your renewal date.
5 Critical Factors When It’s Time to Renew Your Cyber Insurance
1. Multi-Factor Authentication Implementation
When evaluating whether it’s time to renew your cyber insurance, understand that multi-factor authentication (MFA) has moved from a “nice-to-have” to a “must-have” requirement. Nearly all carriers now require MFA for:
- Remote access to networks
- Email accounts
- Administrative/privileged accounts
- Cloud resources
If your organization hasn’t fully deployed MFA, you may face significantly higher premiums or even coverage denial during the renewal process.
2. Endpoint Detection and Response (EDR)
Modern cyber insurance policies increasingly require advanced endpoint protection beyond traditional antivirus software. EDR solutions provide continuous monitoring and automated response capabilities that can detect and contain threats before they spread across your network.
During your cyber insurance renewal evaluation, be prepared to provide documentation about your EDR solution’s capabilities, coverage across your organization, and management processes.
3. Data Backup and Recovery Procedures
When it’s time to renew your cyber insurance, carriers will scrutinize your backup practices more closely than ever. The industry standard now includes:
- The 3-2-1 backup rule (three copies, on two different media types, with one copy off-site)
- Encrypted backups
- Regular testing of restoration procedures
- Offline/immutable backup copies that ransomware cannot encrypt
Your ability to demonstrate robust backup procedures can significantly impact your renewal terms and premium costs.
4. Security Awareness Training Programs
As human error remains the entry point for approximately 85% of successful cyberattacks, insurers place increasing emphasis on security awareness training during the renewal process. Be prepared to document:
- Frequency of security training sessions
- Phishing simulation testing results
- Targeted training for high-risk employee groups
- Training completion rates
Organizations with comprehensive training programs typically secure more favorable terms when it’s time to renew cyber insurance coverage.
5. Incident Response Planning
A well-documented and regularly tested incident response plan has become a critical factor in the cyber insurance renewal process. Carriers want assurance that your organization can respond effectively to minimize damages when an incident occurs.
Your renewal application will likely require details about:
- Incident response team composition
- Communication protocols
- Third-party forensic partnerships
- Tabletop exercise frequency and findings
Preparing for a Successful Cyber Insurance Renewal
As you approach the time to renew your cyber insurance, start the process early—ideally 90-120 days before your renewal date. This timeline allows you to:
- Review your current policy for coverage gaps
- Address any security control deficiencies
- Prepare thorough documentation of your security measures
- Explore multiple carrier options if necessary
Working with a specialized broker who understands both cybersecurity and insurance can provide significant advantages during the renewal process. They can help translate your security investments into underwriting terms that carriers recognize and value.
How Velocity Solutions Can Help With Your Cyber Insurance Renewal
At Velocity Solutions, we specialize in helping businesses navigate the increasingly complex cyber insurance landscape. Our experts can:
- Conduct pre-renewal security assessments aligned with insurance requirements
- Remediate security gaps that could impact your renewal terms
- Prepare documentation that showcases your security investments
- Liaise with brokers and carriers to optimize coverage and premiums
When it’s time to renew your cyber insurance, remember that preparation is key. By understanding carrier requirements and addressing potential issues proactively, you can secure the protection your business needs at the most favorable terms possible.
Don’t wait until the last minute—contact Velocity Solutions today to ensure your cyber insurance renewal process proceeds smoothly and results in comprehensive coverage that protects your business.
