Cyber insurance is a vital safety net when your business faces a cyberattack. However, many organizations have overlooked the fine print and are unaware that failing to meet policy requirements can lead to a portion or all claims denied, leaving them vulnerable when they need support the most.
Recent data (2023–2024) shows that a substantial share (over 27%) of cyber insurance claims end up rejected or only partially paid because the insured didn’t uphold basic cybersecurity standards. The most commonly cited gaps are straightforward measures – MFA, regular patching, data backups, and employee training – which insurers now treat as non-negotiable. If those controls are absent (or if a company misrepresents having them), insurers may invoke policy exclusions or declare a breach of warranty to deny the claim. In practical terms, this means companies must “check all the boxes” on fundamental cyber hygiene to avoid claim denials.
As one cyber insurance broker put it, most denied claims are “self-inflicted wounds” from not doing the basics. Ensuring these baseline controls are in place (and documented) is critical – not only to reduce the risk of incidents, but also to actually receive the financial protection that cyber insurance is supposed to provide when an incident occurs.
That’s where Sixwatch comes in. We help companies with IT Security to protect their business and meet cyber insurance requirements through layered security, clear documentation, and ongoing support.
Don't let non-compliance jeopardize your business and cyber insurance coverage. Contact Sixwatch today for a cyber insurance readiness. Schedule a consultation with Sixwatch.