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The Cost of Being Unprotected: Cyber Insurance Done Right (and Wrong)

In today’s digital business landscape, cybersecurity is no longer optional. With cyberattacks growing more frequent and sophisticated, businesses of all sizes are turning to cybersecurity insurance to manage the financial risks of breaches, ransomware, and data loss. But having cyber insurance is only one piece of the puzzle. Insurance providers increasingly require proof of strong cybersecurity practices before they offer coverage or determine your premium and payout limits.

 

Why Cybersecurity and Insurance Work Together

Cybersecurity and cyber insurance go hand in hand. Implementing the right measures not only protects your business from threats but also strengthens your position when applying for insurance. Insurers want to see evidence that your organization takes security seriously. This includes:

  • Advanced firewalls and endpoint protection

  • Multi-factor authentication (MFA)

  • Regular software patching and updates

  • Employee training to recognize threats like phishing

  • 24/7 system monitoring with a clear incident response plan

These practices reduce your risk of a breach and make you more attractive to insurers.

 

A Success Story

One of our clients, a professional services firm with about 60 employees, came to us concerned about cyber insurance renewals. After engaging Hogan Technology for managed IT and cybersecurity support, they implemented MFA across all systems, robust backup protocols, and regular vulnerability scans.

When it came time for their insurance review, the underwriter noted their improved security posture and offered a renewed policy with nearly 20% lower annual premiums. Not only were they better protected, they also saw real savings—proof that the right security investments pay off.

 

A Cautionary Tale

Not every business has the same outcome. A prospective client we spoke with had recently suffered a breach. They purchased cyber insurance but failed to follow through on required protections. They ignored MFA, skipped endpoint protection, and even falsified answers on their annual cybersecurity insurance survey to secure a lower premium.

When a ransomware attack hit their network, the insurer investigated and discovered the discrepancies. The company’s claim was denied, leaving them fully responsible for recovery costs and business losses.

 

What This Means for Your Business

Stories like these highlight the importance of accurately representing your cybersecurity posture and investing in real protections. It’s not just about meeting insurance requirements, it’s about safeguarding your business, reputation, and bottom line.

At Hogan Technology, we help businesses strengthen their cybersecurity foundation to protect operations and prepare for the cyber insurance process. We implement essential protections and provide documentation to support applications and renewals.

Whether you’re applying for your first policy or looking to reduce renewal costs, having the right tools and support in place is key.

 

If your organization is considering cyber insurance or wants to ensure you’re fully protected, contact Hogan Technology today to schedule a cybersecurity assessment.