Cyber Insurance in 2025: What Businesses Need to Know

Cyber insurance isn’t a luxury anymore. It’s a necessary part of risk management for organizations of all sizes. With rising threats and increasingly strict underwriting requirements, businesses must be more prepared than ever to secure and maintain cyber coverage.

What’s Covered and What’s Not

Cyber insurance typically covers expenses tied to data breaches, ransomware attacks, business interruption, and recovery efforts. But don’t assume all policies are created equal. Exclusions are becoming more specific, especially around unsupported software, outdated systems, and third-party vendors. Some carriers are limiting coverage for ransomware payments or requiring proof of active recovery plans.

It’s essential to read the fine print and understand where your coverage starts and stops. If your cybersecurity posture isn’t up to current standards, you may be surprised by what’s excluded.

What Carriers Are Looking For

Insurance carriers are no longer offering blanket coverage without asking questions. They want to see that your business is taking cyber risks seriously.

Expect to answer detailed questionnaires and provide documentation around:

• Multi-factor authentication for email, admin accounts, and remote access
• Endpoint detection and response tools
• Regular data backups stored off-network
• Patch management policies
• Employee cybersecurity awareness training
• Incident response planning

In short, carriers want to know you’re not just relying on insurance as a safety net. They want proof that you’re proactively managing cyber risk.

Why Backups Matter More Than Ever

Your backup strategy is one of the most scrutinized areas in cyber insurance underwriting. Are your backups automatic? Are they tested regularly? Are they isolated from your primary network?

Without clear documentation and evidence of a strong backup and disaster recovery plan, you could face increased premiums, reduced coverage, or even denial of your claim after an incident. A robust backup plan is not just a technical safeguard. It’s a prerequisite for insurability.

Cyber Insurance Isn’t Optional Anymore

Carriers are tightening the rules, but opting out of cyber coverage isn’t realistic. Cyberattacks are no longer just an IT problem but a business continuity issue. Without insurance, a single ransomware event or data breach can result in devastating financial losses, regulatory fines, and reputational damage.

Clients, vendors, and partners are also increasingly requiring proof of coverage as a condition of doing business. If you’re not insured, you could lose more than data. You could lose trust.

How Yeo & Yeo Can Help

Navigating cyber insurance requirements and strengthening your security posture doesn’t have to be overwhelming. Yeo & Yeo Technology works with businesses across industries to prepare for the evolving cyber insurance landscape. From risk assessments and compliance planning to security tools and managed backups, our team helps you meet carrier expectations and reduce exposure.

Don’t wait until renewal time to get started. Let’s make sure your business is ready. Contact us today.