Cyber Insurance in 2025: Why More Claims Are Being Denied

If you’ve renewed a cyber insurance policy lately, you’ve probably noticed the questions are getting longer, the requirements stricter, and the premiums higher. Unfortunately, even businesses who think they’re covered are finding out the hard way that their claims can be denied, often for avoidable reasons.

At NIE, we’re seeing this more often across the Chicagoland area, and it’s costing organizations time, money, and peace of mind.

Why Claims Are Getting Denied

  • Missing documentation: Can’t prove you had certain controls in place at the time of an incident? That’s a red flag for carriers.
  • Failure to meet security requirements: MFA, regular patching, endpoint protection… if it’s not in place, your claim may be rejected.
  • Unreported changes: Adding new systems or locations without notifying your insurer can jeopardize coverage.

What You Can Do Now

  • Conduct a security audit (preferably with third-party verification).
  • Keep thorough logs and documentation of updates, patches, and training.
  • Review your policy annually and understand exactly what’s required.

NIE’s Role

We help small and medium sized organizations implement and maintain the controls insurers are looking for, from a Security Operations Center (SOC) to regular phishing training and documentation. We can even run a complimentary Microsoft tenant security scan to highlight gaps before renewal.

Ready to make sure your next claim gets approved, not denied? Schedule your free security scan.

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