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Cyber Insurance · Underwriting Readiness

Cyber Insurance Checklist for Australian Businesses

The controls Australian insurers check before they quote — mapped across the five underwriting domains that Coalition, Chubb, Beazley, and AIG use. Work through this list before your next application or renewal.

How to use this checklist

Work through each domain. For items you haven't implemented, estimate the effort to fix them and prioritise based on insurer impact. Items marked as non-negotiable should be addressed before you apply — missing these will result in a declined application or significantly worse terms. Run our free 20-question assessment to get a scored readiness report across all five domains that you can share directly with your broker.

The Underwriting Checklist

1

Identity & Access Management

MFA enabled on all email accounts (Microsoft 365 / Google Workspace)Non-negotiable

This is the single most common reason for a declined application. Must be on all accounts — not just admin.

MFA required for all remote access (VPN, RDP, remote desktop tools)Non-negotiable

RDP without MFA is the leading ransomware entry point. Insurers will ask about this specifically.

MFA on all cloud services and internet-facing admin panelsRequired

AWS, Azure, and any SaaS platform used by admin staff.

Admin accounts are separate from standard user accountsRequired

Admin accounts should not be used for email and browsing — privileged access management.

Admin privileges limited to those who genuinely need themRequired

Review all admin accounts and remove unnecessary privileges.

Phishing-resistant MFA on privileged accounts (hardware tokens / passkeys)Higher coverage levels

Required by some insurers at higher coverage levels. ACSC Essential Eight ML2+ from Oct 2024.

2

Backup & Recovery

Regular backups of all critical business dataNon-negotiable

Daily backups of all data required to run the business — not just servers.

Backups stored in a location isolated from live systemsNon-negotiable

Backups connected to the same network can be encrypted by ransomware. Offline, immutable, or cloud with separate credentials.

Backups tested — restoration verified in the last 12 monthsNon-negotiable

Insurers are increasingly asking the date of last successful restore test. "We have backups" is no longer sufficient.

Recovery time objective (RTO) defined and documentedRequired

Know how long it will take to recover from a complete loss. This affects your business interruption coverage.

Backup access controlled separately from production environmentRequired

If an attacker compromises your admin account, can they also delete your backups?

3

Email Security

DMARC policy configured (p=quarantine or p=reject)Required

Prevents attackers from spoofing your email domain. Asked about in most underwriting questionnaires.

DKIM and SPF records configuredRequired

Email authentication records that work alongside DMARC. Must be correctly configured for DMARC to work.

Anti-phishing and malicious link filtering enabledRequired

Microsoft Defender for Office 365 or equivalent. Basic spam filtering is not sufficient.

Staff completed phishing awareness training in the last 12 monthsRecommended

Not always required, but positively viewed during underwriting and reduces premium in some policies.

4

Endpoint Protection & Patching

Endpoint Detection and Response (EDR) deployed across all endpointsRequired at most levels

CrowdStrike, SentinelOne, Microsoft Defender for Endpoint, or equivalent. Basic antivirus is not sufficient above $500K coverage.

Critical OS patches applied within defined timeframesRequired

Timelines: 48 hours for critical internet-facing vulnerabilities; 14 days for critical workstation vulnerabilities.

Critical application patches applied within defined timeframesRequired

Particularly browser, Office, and any other internet-facing applications.

Unsupported operating systems removed or isolatedRequired

Windows XP, Windows 7, and end-of-life systems are a common underwriting exclusion.

Application control or allowlisting implemented on serversHigher coverage levels

Required by some insurers for server coverage. Prevents unapproved software from executing.

5

Incident Response

Incident response plan documentedNon-negotiable

Defines what to do in the first 24 hours of a breach. Who to call, who decides, how to contain, how to notify. Does not need to be elaborate.

Cyber insurance broker and insurer contact details in the planNon-negotiable

You must notify your insurer promptly after discovering an incident. Know who to call before it happens.

Incident response plan tested in the last 12 monthsRequired

A tabletop exercise counts. Walk through a simulated ransomware scenario with key staff to identify gaps in the plan.

Notifiable Data Breach process documentedRequired

Under the Privacy Act NDB scheme, you may need to notify the OAIC and affected individuals within 30 days of discovering an eligible breach.

Incident log maintainedRecommended

A record of past incidents — including minor ones — demonstrates a proactive security culture and is valued during underwriting.

Priority key

Non-negotiableMissing this will result in declined application or major premium loading
RequiredSignificantly affects coverage terms and premium
Higher coverage levelsRequired above $1M–2M coverage
RecommendedPositively viewed; may reduce premium

How Long Does It Take to Fix the Gaps?

Most readiness gaps can be closed within 4–8 weeks by an IT provider who knows what they're doing. Here are realistic timelines for the most common fixes.

Enable MFA on Microsoft 365 / Google Workspace
Timeline
1 day
Difficulty
Low
Impact
Very high — addresses non-negotiable requirement
Configure DMARC, DKIM, SPF on your email domain
Timeline
1–3 days
Difficulty
Low–Medium
Impact
High — directly asked in underwriting questionnaires
Write an incident response plan
Timeline
1 day with a template
Difficulty
Low
Impact
High — non-negotiable requirement
Set up isolated, tested backups
Timeline
1–4 weeks
Difficulty
Medium
Impact
Very high — non-negotiable for ransomware coverage
Deploy EDR across all endpoints
Timeline
1–2 weeks
Difficulty
Medium
Impact
High — required above $500K–$1M coverage
Review and restrict admin privileges
Timeline
1–2 weeks
Difficulty
Medium
Impact
Medium–High — required at standard coverage levels
Implement EDR + application control on servers
Timeline
2–6 weeks
Difficulty
High
Impact
Required at higher coverage levels only

Get a scored readiness report you can share with your broker

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Frequently Asked Questions

What do cyber insurers check during underwriting?

Australian cyber insurers check five main areas: Identity and Access (MFA on email, remote access, and privileged accounts), Backup and Recovery (isolated, tested backups), Email Security (DMARC, DKIM, SPF, anti-phishing), Endpoint Protection (EDR or advanced antivirus), and Incident Response (a documented plan). The non-negotiable items are MFA and tested backups.

Can I fail cyber insurance underwriting?

Yes. Insurers can decline to quote, add premium loadings, or exclude specific risks. Missing MFA on email is the most common reason for a declined application or significant premium increase. Missing tested and isolated backups is the second most common issue, particularly for ransomware coverage.

How long does it take to fix cyber insurance readiness gaps?

Timelines vary. MFA on email can be enabled in a day. EDR deployment takes 1–2 weeks for most SMBs. Isolated backup setup takes 1–4 weeks. An incident response plan can be documented in a day using a template. Total time from gaps identified to renewal-ready is typically 4–8 weeks.

Should I use a broker for cyber insurance in Australia?

Yes — using a specialist cyber insurance broker typically gets you better terms than going direct. Brokers who specialise in cyber understand how to position your security controls and which insurer is best suited to your profile. Aon and Lockton are the two largest specialist cyber insurance brokers active in the Australian SMB market.

Do I need to disclose past cyber incidents?

Yes. All cyber insurance applications ask about known or suspected past incidents. Failing to disclose a known incident is misrepresentation and can void your policy. Disclose honestly — insurers factor past incidents into pricing, but undisclosed incidents can result in a claim denial at the worst possible time.

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