Cyberattacks are no longer a question of if, they’re a matter of when. And small to mid-sized businesses (SMBs) are right in the crosshairs.

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Despite making up over 22 million businesses in the U.S., only about 17% of SMBs carry cyber insurance. That’s troubling when you consider that over 40% of cyberattacks target small businesses, and the average cost of a breach ranges from $120,000 to over $250,000, with some reaching seven figures. Even more alarming, more than 60% of small businesses fail within six months of a serious cyber incident.

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But there’s good news: insurers are actively rewarding companies that take cyber risk seriously. By implementing proven cybersecurity controls, you can not only prevent breaches, you can unlock better insurance pricing, broader coverage, and fewer exclusions.

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Below is a breakdown of the top 10 cyber controls that help businesses strengthen their security and lower their insurance premiums.

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Top 10 Cybersecurity Controls That Can Reduce Cyber Insurance Premiums

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1. Multifactor Authentication (MFA)

Requiring MFA for remote access, email, and privileged accounts greatly reduces the risk of unauthorized access due to compromised passwords. Even if a password is compromised (via phishing, brute force, or data leaks), MFA adds an extra layer of protection — usually a mobile app, text code, or biometric.

‍Why insurers care: MFA is now required by many carriers to even qualify for coverage as it is the easiest way to stop an attack from starting.

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2. Frequent, Tested Data Backups

Backups should be offline or in the cloud, encrypted, and tested regularly. This ensures quick recovery in the event of ransomware or system failure.

‍Why insurers care: Insurers know businesses with reliable backups are less likely to pay ransoms or file large claims.

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3. Endpoint Detection & Response (EDR)

A true EDR solution, deployed across all endpoints, provides real-time monitoring, threat detection, and automated response.

‍Why insurers care: EDR significantly reduces the dwell time of attackers, minimizing damage.

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4. Patch Management Program

Regular updates and a defined zero-day vulnerability response plan help close security gaps before attackers can exploit them.

‍Why insurers care: Vulnerabilities from outdated software are among the most common breach vectors.

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5. Employee Training & Testing

Regular security awareness training and simulated phishing tests are crucial for building a strong human firewall.

‍Why insurers care: Human error causes more than 90% of breaches. Training reduces that risk.

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6. Security Information and Event Management (SIEM)

SIEM systems detect threats, send real-time alerts to your security team, and support a robust incident response plan.

‍Why insurers care: SIEM tools improve your response time and reduce the overall cost of a breach.

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7. Email Filtering & Web Security Gateway

These tools scan inbound and outbound emails, filter malicious web traffic, and block phishing links or malware.

‍Why insurers care: Prevents common attack methods from reaching your employees.

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8. Incident Response Plan (IRP) + Business Continuity / Disaster Recovery (BC/DR)

A written, tested IRP shows that your team knows what to do during a cyberattack.

‍Why insurers care: Carriers want assurance you can contain incidents and recover quickly.

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9. Strong Cyber Resilience Strategy

This includes secure remote access, restrictions on non-corporate device use, and enforcement of least-privilege principles for sensitive data.

‍Why insurers care: Demonstrates organizational maturity and reduces overall exposure.

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10. Data Encryption

Encrypting data at rest (files, backups, devices) and in transit (emails, transfers) protects sensitive information even if systems are breached.

‍Why insurers care: Encrypted data may not count as a reportable breach, lowering liability.

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Bonus: Advanced Controls for High-Growth or High-Risk Businesses

For companies with revenues over $50M or those in highly regulated sectors, carriers may also evaluate:

• Vulnerability Scanning & Penetration Testing
• Privileged Access Management (PAM) Tools
• Security Operations Center (SOC) Partnerships

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The ROI of Cyber Hygiene

Implementing these controls not only improves your cyber insurance profile, it can dramatically reduce your exposure to loss, protect your brand reputation, and help you maintain operational continuity.

Even deploying just a few of these strategies can lead to:

• Lower premiums
• Broader coverage (e.g. ransomware and social engineering)
• Faster claims payments
• Reduced chance of policy exclusions

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Next Steps

If you're not sure where your organization stands, we offer a free cyber control review. We’ll benchmark your current posture, identify gaps, and help position you for better coverage.

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Get in touch with your Fullsteam Advisor today and learn more about coverage, costs, and our process.