You did everything right… or so you thought. You enabled Multi-Factor Authentication (MFA), had antivirus software running, and bought cyber insurance. But when a breach happened, your claim was denied. Unfortunately, this scenario is becoming more common—and it's costing companies big.
Let’s break down why having MFA isn’t a guarantee your cyber insurance will pay out—and what you really need to stay covered.
MFA Is Essential—But It’s Not Enough
Insurers love to see MFA in place, but they’re looking for much more than a checkbox. If it’s poorly implemented—or only applied to a handful of users—it may not meet your policy’s minimum requirements.
Examples of policy red flags:
MFA only enabled for admins, not all users
Bypasses allowed through legacy apps
No MFA on backups or remote desktop connections
Inconsistent enforcement across cloud services
Policy Language Is Evolving—Fast
Cyber insurance policies now include stricter language about what constitutes "adequate controls." That often includes:
Endpoint Detection and Response (EDR)
Centralized patch management
Regular employee security training
Data encryption at rest and in transit
Incident response plans and tabletop exercises
You can’t rely on assumptions. If your policy requires these, they need to be documented and provable.
Claims Often Fail Due to Poor Documentation
Even if you have controls in place, you’ll need to prove it in the event of a breach. That includes:
Logs showing MFA enforcement and usage
Screenshots or policies showing control implementation
Proof of timely patches and security updates
Records of employee training sessions
Without this evidence, insurers may argue that you weren’t compliant at the time of the incident.
What’s the Fix? Build a Defense That Aligns with Coverage
The best way to protect your business and your insurance claim is to build a security strategy that aligns with what your policy expects.
Many contractors turn to an MSP for CMMC not only for compliance—but to ensure their cybersecurity posture aligns with cyber insurance requirements as well.