5 Hidden Gaps That Could Undermine Your Cyber Insurance Coverage

Cyber insurance is becoming a vital safeguard for Australian businesses—but many don’t realise their policy could be worthless until it’s too late. As insurers tighten the fine print and raise expectations for cybersecurity controls, it’s critical to understand what your policy really requires—and whether your organisation is meeting the mark.

In this article, we explore five commonly overlooked gaps that can compromise your cyber insurance coverage, even if you think you're protected.

1. MFA Coverage That’s Not Fully Deployed

Multi-Factor Authentication (MFA) is now a baseline requirement in most cyber insurance policies. However, insurers often expect MFA to be in place across all critical systems—not just user logins.

2. Incident Response Plans

That Have Never Been TestedHaving a documented incident response (IR) plan is a great start—but it’s no longer enough. Many insurance providers now expect organisations to not only have an IR plan in place, but to demonstrate that it’s been reviewed, tested, and is tailored to the business.

3. Outdated or Incomplete Risk Assessments

Cyber insurance underwriters often request a copy of your latest risk assessment. But if that assessment is more than a year old, missing key assets, or doesn’t align with current threat trends, it may not satisfy their criteria.

4. Endpoint Protection That’s Not Centrally Managed

Insurers are becoming more technical in their evaluations and may ask whether your endpoint detection and response (EDR) is managed through a SOC or an MSP with real-time visibility.

5. Overlooked Third-Party and Supply Chain Risks

Modern cyber insurance policies often include questions around your supply chain security. Without a documented third-party risk management process, your policy may not cover incidents caused by partners.

Final Thoughts

By regularly reviewing your cybersecurity posture and aligning it with your insurance obligations, your organisation can stay resilient, compliant, and ready for whatever challenges may arise.