Cyber insurance has become an important part of risk management for financial services firms. However, obtaining or renewing coverage has become more challenging in recent years.
Insurance carriers now expect organizations to demonstrate that they have implemented essential cybersecurity controls before issuing or renewing a policy. Firms that cannot verify these safeguards may face higher premiums, coverage exclusions, or even denied applications.
For financial advisors, CPA firms, accounting practices, wealth management firms, and other financial organizations, understanding these requirements is an important part of protecting the business.
In this guide, we'll explain the technology controls commonly requested by cyber insurance providers and how your IT environment can be prepared.
Disclaimer: This article is provided for educational purposes only and is not legal, regulatory, or insurance advice. Insurance requirements vary by carrier and policy. Torch Networks does not provide legal or insurance consulting, but we help implement many of the technology controls commonly requested by cyber insurance providers.
Why Cyber Insurance Requirements Have Changed
Cyberattacks continue to increase in frequency and sophistication.
As ransomware, business email compromise, and data breaches have become more common, insurance companies have tightened underwriting standards to reduce risk.
Instead of asking only basic questions, many insurers now request documentation showing that security controls are in place.
The better your cybersecurity posture, the more favorable your insurance application may be.
10 Technology Controls Commonly Requested by Cyber Insurance Providers
While requirements differ between carriers, these controls are frequently included in cyber insurance questionnaires.
1. Multi-Factor Authentication (MFA)
MFA is one of the most common requirements.
Insurance carriers often expect MFA to protect:
- Microsoft 365
- Email accounts
- Remote access
- VPN connections
- Administrative accounts
- Cloud applications
Implementing MFA significantly reduces the likelihood of unauthorized access through compromised passwords.
2. Endpoint Detection and Response (EDR)
Traditional antivirus software is no longer sufficient for many organizations.
Modern Endpoint Detection and Response solutions monitor devices for suspicious activity, help detect ransomware, and support rapid incident response.
Many insurance applications now ask whether EDR is deployed across all managed endpoints.
3. Email Security
Email remains the leading entry point for cyberattacks.
Organizations should implement layered email protection that includes:
- Anti-phishing technologies
- Malware filtering
- Safe attachment analysis
- Spoof protection
- User awareness training
These controls help reduce the risk of phishing and business email compromise.
4. Vulnerability Management
Cyber insurance providers increasingly ask whether businesses regularly identify and address known security vulnerabilities.
A vulnerability management program typically includes:
- Routine vulnerability scanning
- Timely software updates
- Patch management
- Risk prioritization
- Documentation of remediation efforts
5. Secure Backup and Disaster Recovery
Backups are critical to recovering from ransomware and other disruptions.
Best practices include:
- Encrypted backups
- Off-site or cloud storage
- Backup monitoring
- Regular restore testing
- Clearly defined recovery procedures
Backups should be tested periodically to verify they can be restored successfully.
6. Security Awareness Training
Employees remain one of the most important parts of your cybersecurity strategy.
Many insurance carriers want to know whether users receive ongoing education about:
- Phishing emails
- Social engineering
- Password security
- Safe web browsing
- Data handling
- Remote work security
7. Access Controls
Organizations should ensure users only have access to the systems and information necessary for their role.
Recommended practices include:
- Least privilege access
- Role-based permissions
- Regular access reviews
- Removal of inactive accounts
- Secure administrator accounts
8. Microsoft 365 Security
Many financial firms rely heavily on Microsoft 365.
Common security measures include:
- Conditional Access policies
- Microsoft Entra ID protections
- Exchange Online security
- SharePoint permissions
- OneDrive controls
- Sign-in monitoring
Proper configuration helps reduce risk while supporting productivity.
9. Continuous Monitoring
Security is not a one-time project.
Continuous monitoring helps identify unusual activity, investigate alerts, and respond quickly to potential threats before they become larger incidents.
10. Incident Response Planning
Insurance carriers increasingly expect organizations to have documented procedures for responding to cybersecurity incidents.
An incident response plan should define:
- Roles and responsibilities
- Communication procedures
- Vendor contacts
- Escalation steps
- Recovery activities
- Post-incident review
Preparation improves response time during an emergency.
How Torch Networks Helps Financial Firms Improve Cyber Insurance Readiness
While every insurance carrier has different underwriting standards, many of the technology controls they request align with cybersecurity best practices.
Torch Networks helps financial organizations strengthen their IT environment through:
- Endpoint Detection & Response (EDR)
- Multi-Factor Authentication
- Email security
- Vulnerability management
- Microsoft 365 administration
- Encryption
- Secure backup solutions
- Disaster recovery planning
- Continuous monitoring
- Dedicated vCIO services
While we do not provide legal or regulatory consulting, we help implement many of the technology controls commonly required by financial organizations and cyber insurance providers.
Supporting the Technology Your Firm Depends On
Cyber insurance readiness extends beyond infrastructure.
Torch Networks supports the technology behind many of the applications financial firms rely on every day, including:
- QuickBooks Enterprise
- Lacerte
- UltraTax
- Drake Tax Software
- Laserfiche
- ShareFile
- Microsoft 365
Protecting these systems is an important part of an organization's overall cybersecurity strategy.
Real Client Example
When one of our accounting clients encountered a complex technology issue affecting their operations, our engineers worked alongside the appropriate vendors to identify the root cause and restore service quickly.
That type of collaboration is essential during cybersecurity incidents and helps organizations recover with less disruption.
"Torch Networks has been an outstanding technology partner for my firm. Their team is knowledgeable, responsive, and consistently delivers excellent service. We appreciate having a trusted IT partner we can rely on."
Marsha Wayne
Fisher Accounting Services
Frequently Asked Questions
Does cyber insurance require Multi-Factor Authentication?
Many insurance carriers now require MFA for critical systems such as email, remote access, and administrator accounts, although specific requirements vary by policy.
Is antivirus enough for cyber insurance?
Many carriers now expect more advanced endpoint protection, such as Endpoint Detection and Response (EDR), in addition to traditional antivirus capabilities.
Why do insurers ask about backups?
Backups help organizations recover from ransomware and other disruptive events, reducing the financial impact of an incident.
Can a Managed Service Provider help prepare for cyber insurance?
Yes. An MSP can implement and manage many of the technical controls commonly requested by insurers, document security practices, and help organizations improve their overall cybersecurity posture.
Does Torch Networks provide cyber insurance consulting?
Torch Networks does not provide insurance or legal consulting. We help implement many of the technical safeguards commonly requested during cyber insurance underwriting and renewal.
Strengthen Your Cyber Insurance Readiness
Meeting cyber insurance requirements is about more than checking boxes. It's about reducing risk, protecting client information, and improving your organization's resilience against today's cyber threats.
If your financial services firm is preparing for a cyber insurance renewal or wants to strengthen its cybersecurity posture, Torch Networks can help.
Our complimentary Cyber Insurance Readiness Assessment reviews your current IT environment, identifies potential technology gaps, and provides practical recommendations to improve your security and support your insurance objectives.
