Cyber insurance. You don’t think about it – until you really need it. And by then? If your cybersecurity isn’t up to scratch, expect sky-high premiums, endless paperwork, or worse – no coverage at all.
A few years ago, getting cyber insurance in Australia was straightforward. Now? Insurers scan your systems, scrutinise your defences, and increase costs if they don’t like what they see. They no longer just ask if you have security measures in place – they want proof that you are actively reducing risk.
But here’s the good news: you’re not at their mercy. If you demonstrate that your business is well-protected, you can cut costs while keeping coverage strong. Here’s how.
Insurers expect MFA – so get it right
One of the first things insurers check is multi-factor authentication (MFA). If you don’t have it, expect higher premiums or no coverage at all.
But just enabling MFA isn’t enough – insurers assess where and how it’s implemented.
What they want to see:
● MFA for emails, remote access, and admin accounts – not just IT.
● Strict admin privileges – too many people with access is a red flag.
● Single sign-on (SSO) – secure authentication without password fatigue.
Some insurers even scan your external systems before quoting a price. If they detect weak security, expect an immediate increase in your cyber insurance premium—a growing trend as insurers look to mitigate risk.
The Essential 8 is now a pricing factor
The Essential 8 framework was once a best practice – now it’s an insurance benchmark. If you’re aligned, you’re lower risk. If you’re not, expect a higher premium.
Full compliance isn’t mandatory, but progress matters. Insurers look for proactive risk reduction.
Where to focus:
● Patch software quickly – unpatched systems invite attacks.
● Lock down admin access – the fewer privileges, the better.
● Restrict macros in documents – a common malware entry point.
Demonstrating progress on Essential 8 compliance can lower your cyber liability insurance costs over time.
Backups are useless if you can’t restore data quickly
Insurers don’t just want to see you back up your data – they want proof you can recover fast.
Why? Because the longer it takes, the bigger the financial loss (and insurance payout).
What they expect:
● The 3-2-1 backup rule – three copies, two different types of storage, one offsite.
● Regular restore testing – if you’ve never tested it, you don’t actually have a backup.
● Immutable backups – so ransomware can’t corrupt them.
If you can’t confidently answer how fast you can restore your data, your cyber insurance premium will reflect that risk.
Your employees can be your biggest risk
Most cyber attacks don’t start with sophisticated hackers. They often start with someone clicking something they shouldn’t have.
That’s why insurers factor in security training when setting premiums. If you’re not training staff, you’re seen as high risk by default.
What they expect:
● Phishing simulations – test employee awareness before real scams hit.
● Strong password enforcement – weak passwords are a major security hole.
● Ongoing security awareness – one-off training won’t cut it.
If you want to keep your cyber insurance premiums low, show insurers that your people aren’t the weak link.
High-risk industries pay more – unless you prove you’re secure
Finance, healthcare, legal services – if you handle sensitive client data, insurers assume you’re a prime cyber target. That means stricter requirements and higher cyber insurance premiums – unless you prove otherwise.
How to push back on costs:
● Meet industry security standards – ISO 27001, APRA CPS 234, etc.
● Encrypt and restrict access to sensitive data – insurers look for this.
● Maintain audit logs – they may ask for proof of access control.
High-risk industries are often charged higher cyber liability insurance rates – unless they demonstrate strict security controls.
Don’t assume your existing insurance covers cyber incidents
A lot of businesses assume their professional liability insurance covers cyber attacks. That’s not always the case.
Many insurers now exclude cyber-related claims from general policies. That means if you’re hit by ransomware, fraud, or a data breach, you might be left paying for everything yourself.
What to do:
● Review your policy today – know what’s covered and what’s not.
● Don’t wait until after an attack to get cyber insurance – it’s harder to secure coverage once you’ve had an incident.
● Work with an expert – make sure your business is fully covered.
Most Australian cyber insurance policies now require dedicated coverage. If you don’t have it, your business is exposed.
Want lower premiums? Nexio Group can help
Insurers want proof that your business is secure. That’s where we come in.
At Nexio Group, we help businesses put the right security in place before insurers start asking questions – ensuring you meet compliance standards, reduce cyber risk, and avoid unnecessary premium hikes. Our team works proactively to strengthen your security posture, making you a more attractive candidate for affordable cyber liability insurance.
● Cybersecurity audits & liability insurance readiness assessments – we identify vulnerabilities before insurers do, helping you fix gaps that could raise your premiums.
● MFA & access control implementation – insurers expect multi-factor authentication and restricted access controls. We ensure these are correctly configured across your organisation.
● Backup & disaster recovery planning – a strong backup strategy can mean the difference between fast recovery and financial ruin after an attack. We help businesses build resilient, insurer-approved disaster recovery plans.
● Security awareness training & phishing simulations – human error is a top risk factor. Our training programs ensure your team is prepared, which can help lower premiums.
● Proactive vulnerability management & patching – outdated software and unpatched systems are red flags for insurers. We identify and remediate security weaknesses before they become a problem.
We go beyond just ticking security boxes – we create a cybersecurity strategy that meets insurer expectations while keeping your business secure, compliant, and resilient.
Cyber insurance shouldn’t cost a fortune – and with the right security, it won’t.
Find out how our Cyber Security Services can help you stay one step ahead of threats and bring your cyber premiums down.
