As cyber attacks continue to evolve, more organisations are investing in cyber insurance to help mitigate financial risk. However, as threats become more frequent and complex, insurance premiums have been steadily rising. Implementing strong cyber security measures will not only reduce your organisation’s exposure but may also help lower your premiums. Insurers increasingly reward businesses that demonstrate good cyber hygiene, resilience, and proactive risk management.
Below, we explore practical ways your organisation can strengthen its defences and reduce cyber insurance costs.
What is cyber insurance
Cyber insurance helps businesses recover from cyber incidents such as ransomware attacks, data breaches, and system outages. It typically covers costs such as data restoration, business interruption, legal fees, and regulatory fines. Insurers calculate premiums based on your level of risk and there are many factors such as your industry and turnover, but it does mean that your security posture can directly impact how much you pay.
The more controls and protections you have in place, the less likely you are to experience a breach, and the more favourable your premium may be.
Multi-factor authentication (MFA)
Multi-factor authentication is one of the simplest and most effective defences against unauthorised access. By requiring a second verification step, such as using an authenticator app or biometric check, MFA drastically reduces the risk of credential theft.
Many insurers now require MFA as a minimum standard for remote access, email accounts and administrative systems. Enabling MFA across your entire organisation demonstrates a commitment to security and can help lower your risk profile.
Cyber security awareness training for employees
Human error remains the biggest cause of cyber incidents. Regular, engaging awareness training helps employees recognise phishing emails, social engineering attempts, and unsafe online behaviour, as well as reinforcing the steps to take when this happens.
Many insurers ask whether your organisation provides cyber training and how often it’s refreshed. A well-trained workforce not only reduces the likelihood of incidents but also signals to insurers that your business takes prevention seriously.
Email security
Email remains one of the most common attack vectors for cyber criminals. Phishing, spoofing, and business email compromise attacks can easily lead to credential theft, ransomware infections, and data breaches. Implementing advanced email security solutions, such as spam filtering, attachment scanning, and link protection helps prevent malicious content from reaching inboxes.
You should also configure authentication protocols such as DMARC, DKIM, and SPF to stop attackers from impersonating your domain. These measures demonstrate strong cyber hygiene to insurers and can significantly reduce your overall risk profile.
Ensure devices and software are up to date
Unpatched software and outdated systems are prime targets for cyber criminals. Maintaining a structured patch management process ensures vulnerabilities are closed before they can be exploited.
Automated patching tools or managed IT services can help you stay compliant with best practices. Demonstrating consistent patch management will reassure insurers that your business actively reduces exploitable risks.
Replacement of end-of-life (EOL) devices
Running end-of-life hardware or software; such as unsupported operating systems, introduces major vulnerabilities. Once vendors stop releasing security updates, those systems become easy targets.
Replacing EOL devices and software with modern, supported versions not only strengthens your cyber resilience but also shows insurers that your business is proactive in risk mitigation. Organisation still using Windows 10 devices should be looking to replace these as soon as possible, and should deploy Extended Security Updates (ESU) for the short-term whilst devices are upgraded or replaced.
Secure immutable backups
Immutable backups; copies of data that can’t be altered or deleted, are essential for recovering from ransomware or data loss incidents. They ensure that even if your systems are compromised, your business can recover quickly and securely.
Insurers look favourably on organisations with proven backup and recovery strategies, especially those with off-site or cloud-based immutable storage.
Cyber Essentials certification
In the UK, Cyber Essentials and Cyber Essential Plus are government-backed certifications that verifies an organisation meets a certain level of cyber security.
Achieving certification demonstrates to insurers (and customers) that your business has implemented core protections such as secure configuration, access control, and malware defences. Many insurers offer premium discounts or enhanced coverage to Cyber Essentials-certified organisations.
Endpoint detection and response (EDR)
EDR provides advanced monitoring, detection, and response capabilities across all endpoints, from laptops to mobile devices. It helps identify and contain threats in real time, minimising the impact of a potential attack.
Insurers recognise EDR as a best-practice measure for modern cyber defence, especially in remote and hybrid environments.
Disaster recovery or incident response plan
Having a documented and tested disaster recovery or incident response plan is essential. It outlines how your business will respond to, contain, and recover from cyber incidents.
Insurers value clear, well-practised response plans because they limit downtime, financial loss, and reputational damage. A well-prepared organisation is always seen as a lower risk.
Penetration testing
Penetration testing involves simulating real-world attacks to uncover vulnerabilities in your network, applications, and systems. Regular testing allows you to address weaknesses before they can be exploited.
Some insurers now require evidence of penetration testing as part of policy renewal. It’s a powerful way to prove you’re actively managing and reducing risk.
Partner with a managed security service provider (MSSP)
Working with an MSSP gives your business access to 24/7 security expertise, monitoring, and incident response. MSSPs use advanced tools and threat intelligence to proactively defend against emerging risks.
By outsourcing to specialists, you reduce your exposure and demonstrate to insurers that your organisation is continuously monitored and protected by professionals.
Final thoughts
Reducing your cyber insurance premium isn’t just about saving money – it’s about building a resilient, secure business. By investing in robust security controls, ongoing employee training, and proactive monitoring, you not only protect your organisation but also demonstrate to insurers that you take cyber risk seriously.