In a recent webinar hosted by our Managed IT Services (MSP) department in collaboration with Arctic Wolf, a critical and sometimes uncomfortable conversation unfolded around the current cybersecurity landscape. Most specifically, the skyrocketing ransomware threat and the increasing importance of cyber insurance in today’s complex world.

This is Part One of a two-blog series unpacking that webinar, which you can also watch on demand. Let’s dive into what’s happening out there, why insuring against cyber risk is more difficult than ever, and what organizations need to know to protect themselves in 2025 and beyond.

A Climate of Rising Threats

The cybersecurity environment isn’t just shifting. It’s accelerating. Organizations of every size and industry are facing more sophisticated attacks, with ransomware leading the charge. Our experts shared a troubling statistic during the session: 83% of ransomware victims end up paying at least some portion of the ransom.

That number speaks volumes. Cybercriminals aren’t just hoping their attacks stick. They know the odds are in their favor, and as more victims pay up, attackers are emboldened to keep going. It’s a vicious cycle that puts businesses in a constant state of vigilance.

Here’s the harsher truth: cybersecurity isn’t a one-time investment. It’s an ongoing battle. As the threat landscape becomes more aggressive, the tools, strategies, and even insurance coverage businesses depend on must evolve alongside it.

The New Reality of Cyber Insurance

Cyber insurance was once seen as a smart “just-in-case” measure. It has since quickly become a non-negotiable element of an organization’s risk strategy. Here’s the rub, though: getting cyber insurance is no longer as easy (or as affordable) as it once was.

Underwriters are growing more selective. Premiums are rising, and many businesses are discovering that the minimum requirements for coverage now include far more than a simple antivirus or firewall. If your environment doesn’t meet a certain standard (like enforcing multi-factor authentication or demonstrating employee security awareness), insurers may offer only partial coverage, hike up premiums, or reject the application altogether.

That’s where part of the challenge lies in the insurance market itself. Cyber policies are still relatively new and constantly changing. There’s no universal blueprint for coverage, and the expectations from insurers can vary widely depending on your industry, data types, and internal risk posture.

What’s become clear is that insurance companies aren’t just handing out blank checks. They want to see that you’re actively reducing your risk before they agree to share in it.

While 95% of organizations recognize the need for cyber insurance, many remain underprepared to meet the growing requirements needed to qualify for coverage. Experts, like our MSP team and Arctic Wolf, help bridge that gap by guiding organizations through both the technical and strategic steps needed to become not only insurable, but resilient.

Coverage Isn’t Created Equal

Wondering what cyber insurance actually covers? Many organizations operate under the assumption that a policy will handle everything if an incident occurs, but that’s rarely the case. Most policies are packed with “sublimits”, which are clauses that cap the amount insurers will pay for specific areas like forensics, public relations, hardware replacement, or legal fees.

That means a business could face a significant shortfall in recovery costs, even with a policy in place. The takeaway? It’s not enough to have cyber insurance. You need to know exactly what’s in your policy, and work with your broker or partner to fill in the gaps. We recommend avoiding sublimits wherever possible in your policy.

There is massive value in taking a comprehensive “toolbox” approach to insurance. Ideally, coverage should extend beyond financial reimbursement to include access to experts: incident response teams, legal counsel, PR specialists, and cybersecurity forensic analysts who can guide recovery efforts in real-time. Your staff are busy. They don’t have time to add this to their plate of responsibilities, not to mention they may not be qualified for the role. So, we suggest that you ask about being 100% reimbursed for these critical services from your policyholder.

Looking Ahead

We hope our Arctic Wolf webinar has set the stage for a more proactive approach to cyber risk. From ransomware’s steady rise to the growing complexity of cyber insurance, one thing is clear: companies can no longer afford to be reactive.

In Part Two, we’ll explore what steps organizations can take to improve their insurability, reduce their premiums, and build a stronger security posture from the inside out, including insights on employee training, zero-trust security, and risk mitigation strategies that work.

If you have questions on how you can prepare your business against today’s threats, talk to our MSP team. We’re here to help.

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