The cyber insurance market has softened in recent years. Requirements that were once rigid — like mandatory multi-factor authentication (MFA) or endpoint detection and response (EDR) tools — have been relaxed by many carriers. But here’s the danger: just because carriers aren’t demanding these safeguards today doesn’t mean businesses can afford to ignore them.
In a recent conversation with Zane Goldthorpe of ProWriters, we broke down when the market turns again, clients who haven’t implemented critical cyber risk management controls will be scrambling to comply just to qualify for a quote. As a producer, the time to educate and guide your clients is now — not after a claim or during a hard market. Responsible businesses adopt these practices because it’s the right way to run their company, not because an insurance carrier makes them.
Cyber liability insurance is no longer optional in the middle market. And risk management is the foundation of protecting both coverage and insurability.
The most successful producers don’t just talk about cyber policies; they educate clients on the tools that carriers expect and that genuinely reduce the likelihood of claims. These are no longer “nice-to-haves.” They’re essential.
Multi-Factor Authentication (MFA)
MFA remains the cornerstone of cyber hygiene. Carriers still view it as a must-have, and most businesses have grown accustomed to using it in daily workflows. While some complain about the inconvenience of scanning a face or receiving a code, the reality is that MFA is the single most effective control against unauthorized access.
For producers, the message is simple: clients who don’t use MFA are taking an avoidable risk. Position it as the modern-day seatbelt of digital security.
Endpoint Detection vs. Managed Detection (EDR vs. MDR)
In recent years, EDR became a standard carrier requirement. But now, the focus has shifted toward Managed Detection and Response (MDR). MDR goes beyond detection; it includes continuous monitoring and active response when an event occurs.
The advantage is clear: businesses are no longer just alerted to a problem — the system reacts in real-time to stop the threat. For insureds, MDR provides a higher level of protection. For producers, it’s a differentiator to educate clients on the evolution of carrier expectations.
Backups and Ransomware Defense
No cyber security program is complete without adequate, regularly tested backups. In a ransomware event, backups can be the deciding factor between a quick recovery and complete business paralysis.
Testing matters just as much as having backups. Too many companies assume their backups work, only to discover during a breach that files are corrupted or incomplete. Producers should make this a talking point: “When was the last time you tested your backups?”
Remote work accelerated the “Bring Your Own Device” (BYOD) model. Employees often use personal laptops and cell phones to access company systems. But here’s the gray area: some cyber policies may limit or exclude coverage if the compromised device is not company-owned.
One real-world claim nearly hinged on this distinction. A remote employee’s personal laptop was compromised, granting access to multiple client accounts. The carrier initially raised concerns about coverage because the device wasn’t company-issued.
This creates two critical action steps for producers:
Cyber liability insurance can be undermined by something as simple as an employee using their own laptop. Don’t let your clients be surprised by that exclusion after a breach.
Many businesses mistakenly believe buying cyber insurance is enough. But insurance is not a substitute for proper cyber hygiene. A cyber policy is the last line of defense — protection when everything else fails.
Forward-thinking carriers now provide security tools bundled with policies. These services, such as monitoring, phishing simulations, or endpoint protection, can add significant value. Producers should encourage clients to take advantage of these tools, especially if they don’t already work with a managed service provider (MSP).
However, this comes with a warning: MSPs often view carrier-provided tools as competition. Producers must balance the relationship carefully. The key is communication. If an MSP referred you to the client, give them first right of refusal before implementing carrier tools. This respectful approach preserves referral partnerships while still protecting the client.
Cyber insurance is constantly evolving to “follow the hackers.” As criminals invent new tactics, carriers adapt policies to address emerging risks.
For producers, this means one thing: know the forms. Subtle differences can determine whether a claim is covered or denied. In a fast-changing landscape, working with wholesalers and specialists like ProWriters ensures you aren’t caught off guard at the “Super Bowl moment” — during a major claim.
Producers who can confidently explain the differences between endorsements, embedded cyber coverage, and standalone policies immediately differentiate themselves in the marketplace.
To protect clients — and their own E&O exposure — producers should implement these steps immediately:
This positions producers as trusted advisors rather than product pushers, helping them win and retain middle-market accounts.
The cyber insurance market may be soft today, but the next hard market is inevitable. Businesses that wait until requirements tighten will find themselves scrambling — or worse, unable to secure coverage.
Producers have a responsibility to guide clients toward cyber resilience now. MFA, MDR, backups, phishing training, and clear BYOD policies are not optional. They are the new standard of responsible business operations.
The takeaway is simple: insurance protects against catastrophe, but risk management prevents it. Producers who understand and deliver this message will lead the market when the next shift comes.
An agency can write more premium and still struggle to understand whether the business is becoming more profitable. Premium volume tells part of the story.
A prospect agrees to talk about insurance. Then the work begins: locating declarations pages, answering questions, sending documents, and repeating information that already exists somewhere
Guffy Wright thought he had presented an offer that would be difficult to refuse. His insurance proposal was approximately $2 million less expensive, and he
Sitting in a prospect’s parking lot, David Carothers started questioning whether he belonged inside the building. The company was a significant opportunity. Its operations were
A renewal date tells you when to call a business. It does not necessarily tell you why the owner should take the call. That difference
A baseball card tucked inside a thank-you note would be easy to overlook. For Patrick Galvin, it became a reason to return to a mortgage
Please confirm you want to block this member.
You will no longer be able to:
Please note: This action will also remove this member from your connections and send a report to the site admin. Please allow a few minutes for this process to complete.
Responses