Free Cyber Insurance Checklist for Small Businesses

The average small business cyber incident costs $120,000. On top of the financial hit, operations can be down for days to months, reputational damages can result in lost sales, and in a worst case scenario, a big attack can lead to bankruptcy. Contrast that with the median premium for a small business at $2,000 per year, or less than $200 per month for a policy with a $1 million limit; the value proposition is clear.

But historically small business owners have thought: this won’t happen to me because I’m too small to be a target, and I’d rather not add another expense. In the age of AI, that belief no longer holds. Small businesses are now prime targets because the cost to launch an attack has drastically decreased with AI, and many small businesses haven’t invested in cyber security, which makes them easy targets.

Cybersecurity can feel like a daunting and expensive endeavor for a small team without dedicated IT or security staff. However there are numerous foundational, low-cost security measures small businesses can implement to improve security and, better yet, save money on their cyber insurance premiums.

Security posture directly affects premiums. Carriers no longer price only on revenue and industry. There’s now often an entire section on the application asking about security controls, and without those controls, surcharges add up. But the inverse is true as well: strong controls lead to real discounts. Check out our complete checklist here.

Here’s a preview of the checklist, broken down by effort and reward:

  1. Quick Wins: Free or inexpensive controls with a light technical lift. These are a great starting point, and include topics such as
    1. Multifactor authentication
    2. Security awareness training
    3. Incident response planning
  2. Core Investments: Paid controls with higher returns on premium savings. Sample topics include:
    1. Data backups and encryption
    2. Email sender authentication
    3. Endpoint detection and response
  3. Advanced: Higher cost with incremental gains, but signals maturity at renewal. Sample topics include:
    1. Security Monitoring
    2. Firewall and network segmentation
    3. Penetration testing

Obtain a copy of the full checklist here to see the full list of recommended security measures: what each control is, why it matters, and how much it can impact premiums. Need additional support to implement these controls? Stronta offers custom consulting engagements for businesses looking to improve their security posture. Reach out at hello@stronta.com to learn more.

FAQs

Does cyber insurance replace good security?
No, and insurers are paying closer attention. Carriers increasingly require basic security controls before issuing or renewing a policy. Weak security can mean higher premiums, exclusions, denial of coverage, or, worst of all, denial of claims.

What security controls have the biggest impact on premiums?
Multifactor authentication, endpoint detection and response, and data backups consistently appear on insurer applications and carry considerable weight. Our checklist walks through exactly which controls matter most, and why.

How long does it take to implement these controls?
Quick wins like MFA and security awareness training can be implemented in days. Core investments like EDR and email authentication typically take a few weeks. Advanced controls like penetration testing are periodic rather than ongoing.

How do I know where to start?
Start with the Quick Wins. They’re low-cost, fast to implement, and immediately improve your security posture and insurability. Download our free checklist for a step-by-step roadmap.