In 2025, applying for Cyber Insurance can feel like sitting an exam. The application forms are longer, the questions are more technical, and if you get the answers wrong, the premium can be eye-watering—or worse, the insurer might decline to quote altogether.
The reason is simple: Insurers are tired of paying for preventable claims.
At Southside Insurance Brokers, we have seen a major shift in how underwriters price risk. They are no longer just looking at your turnover; they are looking at your “Cyber Hygiene.”
The good news? You can directly influence the cost of your insurance. By implementing specific controls, you not only secure your business against hackers but also position yourself as a “Gold Standard” risk to insurers.
Here are 5 practical steps to lower your risk profile—and potentially your premium.
1. Multi-Factor Authentication (MFA) is Non-Negotiable
If you do one thing today, make it this. MFA (where you need a code from your phone to log in, not just a password) is now the minimum entry requirement for most cyber policies.
- The Insurer’s View: Without MFA, a hacker only needs one stolen password to access your entire network. If you don’t have MFA on your email and remote access, many insurers will simply refuse to offer cover.
- The Action: Enable MFA on everything—not just your banking. Ensure it is active on your email (Office 365/Gmail), your remote desktop tools, and your accounting software (Xero/MYOB).
2. Turn Your Staff into a “Human Firewall”
Did you know that over 80% of cyber breaches start with human error? A staff member clicking a link in a fake Australia Post email is a risk that no firewall can stop.
- The Insurer’s View: Insurers love to see proactive training. They want to know you are fixing the “human” vulnerability.
- The Action: Don’t just do a boring annual seminar. Implement monthly phishing simulations. These are automated test emails sent to your staff to see if they click. If they do, they get a quick 2-minute training video. Showing an insurer that you have reduced your “click rate” from 20% to 2% is a powerful negotiating tool.
3. The “Immutable” Backup Standard
Having a backup on a hard drive plugged into your server is no longer enough. Modern ransomware is designed to find your backups and delete them before locking your main files.
- The Insurer’s View: If your backups are connected to your network, they are not safe. Insurers look for “Immutable” or “Air-Gapped” backups—copies of your data that cannot be altered or deleted, even by an admin.
- The Action: Ask your IT provider: “Do we have an offline or immutable backup that a hacker cannot touch?” If the answer is no, you are vulnerable to a total loss.
4. Automate Your “Patching”
“Patching” is just technical speak for updating your software. Hackers often exploit known holes in old software versions to break in.
- The Insurer’s View: An unpatched server is like leaving your front door unlocked. It signals to an underwriter that your business is lazy with security.
- The Action: enable automatic updates for all operating systems and third-party apps. You shouldn’t rely on remembering to click “update”; your systems should do it for you.
5. Have a “Fire Drill” for Cyber (Incident Response Plan)
If your screen turned red with a ransom demand right now, who would you call first? If you don’t know, you are already losing money.
- The Insurer’s View: Businesses that panic cost more to fix. Businesses with a plan recover faster and cheaper.
- The Action: Create a simple 1-page Incident Response Plan. It should list:
- Who makes the decisions (e.g., the CEO).
- The number for your Cyber Insurer’s 24/7 hotline.
- Your IT support contact.
- A pre-written communication to send to clients.
How Southside Helps You Save
This is where our Tailored Risk Mitigation Strategies come in.
We don’t just send your application to the insurer; we present your “Cyber Resume.” We work with you to document these 5 steps, proving to the underwriter that you are a safe bet. By presenting a robust risk profile, we can often negotiate better terms, lower excesses, and more competitive premiums.
Ready to review your cyber risk? Contact Southside Insurance Brokers today.
Telephone: (02) 9542 5151
Email: info@southsidebrokers.com.au
