Cyber Insurance Readiness: What SMBs Need to Know Now…
More than ever before, small and mid-sized businesses now carry cyber insurance, with recent data showing adoption climbing from under half of businesses in 2024 to roughly 60% or more in 2025. At the same time, insurers are tightening underwriting requirements, forcing SMBs to prove that they have credible security controls in place before they can qualify for coverage or favorable premiums.
Why Cyber Insurance Is Getting Harder to Qualify For
Cyber insurers have seen a surge in both the frequency and severity of claims over the last few years, especially tied to ransomware and business email compromise. In response, many carriers have shifted from simple questionnaires to more rigorous security assessments that look for controls like multi-factor authentication, endpoint protection, cyber security training and incident response plans. This shift means that an SMB can no longer treat cyber insurance as a quick check-the-box purchase; underwriters increasingly expect evidence that cyber risk is being actively managed.
For businesses that lack in-house security expertise, this new reality can be confusing and frustrating. Policy applications may be delayed or rejected, or renewals may be offered only with higher deductibles and narrower coverage if controls are missing or poorly documented. Some businesses even discover after an incident that their claim is reduced or denied because they could not demonstrate they followed required security practices or answered underwriting questions accurately. Cyber insurance is evolving into a partnership between the insurer and the insured, and organizations must be ready to show they are doing their part.
How Cyber Advisory Services Help You Get Insurance-Ready
This is where cyber advisory services tailored to your business become invaluable. A trusted advisor can perform a focused readiness assessment aligned with the kinds of controls insurers care most about, such as identity management, backups, email security, and incident response planning. Instead of guessing what an insurer might look for, management gains a clear, prioritized roadmap that addresses gaps in both technical safeguards and documentation. Advisory support can also help simplify complex questionnaires and ensure that responses are accurate, consistent, and backed by evidence.
Our goal at Security Pesrpectives is not just to help your team “pass” underwriting, but to help the business meaningfully reduce risks, while unlocking better coverage and pricing options. By implementing practical, appropriate controls, the organization strengthens its security posture and demonstrates insurability at the same time. That combination can reduce the probability of catastrophic losses, improve business resilience, and give owners the confidence that they are prepared for both attacks and insurance scrutiny.
Want to learn more about cyber insurance readiness?
If you want to understand how ready your business is for cyber insurance and what to fix first, request a 30‑minute strategy session with Scott at Security Perspectives today.