Why Cyber Insurance May Deny Your Claim—And What to Do About It
A breach today isn’t just about stolen data—it’s about lost trust, missed deadlines, and partners asking, “Why weren’t we covered?”
With the average breach now costing $4.88 million, insurance alone won’t save you. In fact, many firms discover too late that their policies come with new strings attached: unless you’ve deployed advanced tools like endpoint detection and response (EDR), your claim could be denied.
The Hidden Costs of a Breach:
When attackers strike, the expenses pile up fast:
- Incident response and forensic analysis
- Regulatory fines and breach notifications
- Downtime during court prep or filings
- Lost clients, referrals, and hard-earned reputation
For firms that handle sensitive information, the cost isn’t just money. It’s credibility.
The Security Tool Every Insurer Now Looks For:
Enter: Endpoint Detection and Response (EDR)
Unlike traditional antivirus software, EDR doesn’t just block threats. It monitors behavior in real-time, isolates suspicious devices, and provides the forensic breadcrumbs your team (and your insurer) needs to respond effectively.
Insurers are taking note. Many now require proof of:
- Active EDR across all endpoints
- Incident response plans tied to EDR alerts
- Continuous monitoring—not just scheduled scans
Without this? You may be exposed and uninsured.
Why This Matters for DC-Area Firms:
- Federal-facing work often demands security compliances
- Your clients expect proactive protection—not reactive explanations
- Cyber liability coverage is tightening—and claims scrutiny is increasing
- A breach under your watch could mean disqualification from future work
Next Steps for Protection:
Review your cyber insurance policy for EDR or SIEM requirements
Audit your endpoints—laptops, desktops, mobile devices—for gaps
Consider a managed security provider to deploy and monitor EDR for you
Train your staff to recognize threats—and report anomalies fast
Final Thought:
A breach is costly. A breach without coverage? Devastating.
Don’t wait for an insurer to tell you what you should’ve had in place. Let’s talk. Book a discovery call here and find out what makes your protection airtight.