Cyber insurance used to be a “nice-to-have.” In 2025, it’s become a business necessity. From ransomware attacks to data breaches, the threat landscape continues to grow. As a result, more insurers are tightening requirements and raising premiums, leaving many businesses scrambling to qualify or even maintain coverage. If your business operates in construction, manufacturing, engineering, or any industry with sensitive client data or project workflows, it’s time to get serious about cyber insurance.
Here’s what you need to know to stay protected and insurable:
1. Cyber Insurance Requirements Are Getting Tougher
Carriers aren’t just handing out policies anymore. To even qualify, most insurers now require that your business has baseline protections in place:
- Multifactor authentication (MFA) on all logins
- Advanced endpoint protection (EDR - Endpoint Detection & Response)
- Encrypted backups stored off-site or in the cloud
- Documented incident response plan
- Regular security awareness training for employees
From the Field: A mid-sized construction firm in Phoenix was denied renewal because they lacked MFA on remote email access. Their broker told them that even with a clean claim history, non-compliance with updated requirements made them too risky to cover.
What You Need to Know: Insurance carriers are now being forced to act more like regulators. Meet the minimum controls or risk being uninsurable.
2. Your IT Posture Affects Your Premiums (and Claims)
Your insurance company evaluates your risk level based on your cybersecurity maturity. Businesses with outdated infrastructure, inconsistent patching, or no formal IT policies are seen as high-risk.
From the Field: A manufacturing firm in southern Arizona experienced a ransomware attack and filed a claim. After the insurer investigated and found the firm had outdated endpoint protection and no incident response plan, they paid only partial reimbursement.
Even worse? Some policies now include claim denials for businesses that said they had controls in place but didn’t follow through. Partnering with a professional IT support team can help ensure you maintain compliance.
What You Need to Know: It’s not enough to say you have protections in place. You must implement and maintain them (and sometimes even audit them) to avoid costly surprises.
3. Cyber Insurance Doesn’t Replace Cybersecurity
Insurance isn’t a get-out-of-jail-free card. It’s a safety net. If your operations are hit with ransomware or data loss, your insurance may help cover recovery costs, legal support, and customer notifications, but only if you can prove you took reasonable precautions in advance.
From the Field: An architecture firm in Flagstaff relied solely on their insurance after a data breach exposed client blueprints. They hadn’t run a data backup in over 90 days, which violated their policy terms. The result? $40,000 in unrecoverable losses.
What You Need to Know: Cyber insurance helps with recovery, not prevention. Your first line of defense is a strong security program.
4. Don’t Overlook the Fine Print: Know What to Include in Your Policy
Even with the right security tools in place, some businesses are caught off guard when their policy doesn’t cover what they assumed it would. When applying or renewing, make sure to confirm the following areas are clearly addressed:
- Coverage for social engineering and phishing attacks (these are often excluded by default)
- Business interruption and downtime due to cyber incidents
- Data restoration and incident response services
- Legal fees and compliance penalties
From the Field: A civil engineering firm in Scottsdale suffered a social engineering scam where an employee unknowingly wired funds to a fraudulent account. Their cyber policy didn’t cover financial fraud, and they were out $55,000. A policy review with a broker could have avoided the gap.
What You Need to Know: Cyber insurance isn’t one-size-fits-all. Make sure your policy covers what matters most to your operations and review it regularly with your IT partner and broker.
5. Your MSP Can Be a Strategic Ally
The right IT partner helps ensure you meet policy requirements, maintain documentation, and stay ahead of threats. We can also coordinate directly with your insurance broker or underwriter to make sure your cybersecurity program supports your risk profile.
From the Field: A general contractor preparing for a major RFP was asked for proof of cyber insurance and controls. Their MSP worked with the broker to implement EDR, update their documentation, and help secure the policy allowing them to win the project.
What You Need to Know: You don’t have to navigate this alone. An MSP helps bridge the gap between IT security and insurance requirements.
Peace of Mind Starts with Preparation
At Computer Dimensions, we work with Arizona business leaders to harden their environments, lower their cyber risk, and get them coverage-ready. From deploying MFA and backups to training your team, we help you meet today’s cyber insurance standards.
Don’t wait until your renewal gets denied.
Let’s talk. We’ll help you check the boxes, reduce your exposure, and protect what you’ve built.
Book a free Cyber Risk Review with our experts.
