Written by Jonathan Perz, Manager of Information Security at Abacus Technologies.
Every business faces cyber risk. Breaches, ransomware, and fraud are no longer if scenarios—they are when. The question isn’t whether your organization will face an incident, but how prepared you’ll be when it happens.
Cybersecurity insurance provides an important financial backstop, helping organizations recover from losses caused by cyberattacks. But let’s be clear: insurance is not a substitute for strong security. It won’t stop a breach. It won’t protect your data. What it can do is help you pick up the pieces after the damage is done.
Coverage Isn’t Guaranteed
Even when you have a policy, coverage is not automatic. Insurers are tightening requirements and looking for reasons to deny claims. Inaccurate or incomplete applications are one of the most common reasons organizations are left uncovered.
Consider this example: if your application says “yes” to multi-factor authentication but you’ve only deployed it for email and not remote access, that technicality can nullify your entire policy. At the very moment you need support most, your coverage may not exist.
Accuracy matters just as much as coverage.
Strong Controls = Lower Risk (and Lower Premiums)
The good news? Robust cybersecurity practices not only reduce your actual risk, they also make you more attractive to insurers. Organizations that can demonstrate strong controls often unlock better coverage and lower premiums.
The measures insurers value most include:
- A tested Disaster Response Plan
- Annual risk assessments
- Enforced multi-factor authentication across systems
- Ongoing security awareness training for employees
These aren’t just checkboxes for underwriters — they’re real-world protections that harden your defenses and show you’re serious about security.
Insurance as the Last Line of Defense
Insurance should never be your only line of defense. The smartest organizations take a layered approach:
- Protect first with proactive security controls.
- Insure second as a financial safeguard.
That balance ensures that when the inevitable happens, your business is resilient enough to withstand the impact — and financially protected enough to recover quickly.
How Abacus Technologies Helps
At Abacus Technologies, we help businesses close the gap between compliance, security, and insurance. Our team works with you to:
- Build and implement policies that align with insurer expectations.
- Deliver employee training programs to reduce human risk.
- Guide you through the often confusing and labor-intensive application process.
- Ensure your cybersecurity insurance strategy is accurate, defensible, and comprehensive.
When it comes to cyber risk, denial is not an option. Don’t risk being left uncovered when it matters most.