Cyber Insurance Readiness Checklist
What healthcare practices need to qualify for cyber insurance coverage—and keep it valid when claims arise
Answering "no" to key questions could lead to denied claims or coverage gaps
Understanding Cyber Insurance Questionnaires
A cyber insurance questionnaire is designed to evaluate an organization's security maturity, risk exposure, and overall eligibility for coverage. Insurers use these responses to determine policy approval, coverage limits, exclusions, and premiums.
Most questionnaires place heavy emphasis on identity protection, ransomware resilience, employee behavior, and incident readiness.
Critical Warning
Providing accurate and truthful answers is critical—misstatements or outdated controls can result in coverage limitations or claim denial.
Key Areas Insurers Evaluate
Cyber insurers typically assess the following areas to understand your risk profile
1. Access Management & Identity Security
- Use of Multi-Factor Authentication (MFA) on email systems
- MFA on remote access (VPN, cloud apps)
- MFA on administrative and privileged accounts
- Role-based access and least-privilege enforcement
2. Data Protection & Backups
- Regularly scheduled backups
- Encryption of backup data
- Off-site or immutable backups to protect against ransomware
- Documented backup testing and restore validation
3. Security Controls & Monitoring
- Endpoint Detection & Response (EDR)
- Firewalls and network security controls
- Email security and anti-phishing protections
- Continuous monitoring or managed security services
4. Policies, Procedures & Employee Training
- Ongoing security awareness training
- Phishing simulations or testing
- A documented incident response plan
- Defined roles and escalation paths during a cyber event
5. Vendor & Third-Party Risk Management
- Security requirements for vendors with system or data access
- Business Associate Agreements (BAAs) where applicable
- Monitoring and review of third-party security practices
Common Questions Asked by Cyber Insurers
You can expect insurers to ask questions such as:
Do you have MFA enabled for all email, remote access, and administrative accounts?
Are backups encrypted, isolated, and protected from modification or deletion?
How frequently are operating systems, applications, and firmware patched?
Do you maintain a written incident response plan, and has it been tested or tabletop-exercised?
Have you experienced any cyber incidents, ransomware events, or data breaches in the past 2–3 years?
Do you restrict and regularly review administrative privileges, including local admin access?
Is endpoint security centrally managed and monitored?
Do you log and retain security events, and are logs reviewed regularly?
Important Note
If you answer "no" to any of these questions and do not have the controls in place, it could lead to denied claims or coverage exclusions when you need protection most.
Best Practices When Completing a Questionnaire
Be accurate and current
Inaccurate or overstated responses can lead to denied claims or rescinded coverage, as noted by Reed Smith LLP.
Prepare supporting documentation
Have policies, network diagrams, backup reports, and incident response plans readily available.
Involve IT and security leadership
Work with your IT manager, security team, or MSP to ensure technical accuracy, as recommended by CBTS.
Questions You Should Ask the Insurer
Cyber insurance policies vary widely. Ask these questions before binding coverage:
- Does the policy cover ransomware payments, and are there limits or conditions?
- Is social engineering fraud (wire transfers, invoice fraud, impersonation) covered?
- Are regulatory fines, legal defense costs, and breach notification expenses included?
- Does coverage extend to cloud services and third-party providers?
Why This Matters
Cyber insurance is no longer just a financial product—it's a security partnership. Insurers increasingly expect organizations to demonstrate measurable, enforceable security controls.
Working with an experienced healthcare IT and cybersecurity partner helps ensure:
Your answers reflect reality
Controls align with insurer expectations
Coverage remains valid when it matters most
Let's ensure your practice is protected and your coverage is valid