Year after year, companies face a growing number of cyber threats. Ransomware attacks, data leaks, and other security incidents can have significant financial and legal consequences. More and more companies are turning to cyber insurance to cover these risks. But what exactly is cyber insurance?
The most important things in brief
- Cyber insurance and IT security: Cyber insurance offers protection against the financial consequences of cyber attacks. Insurers expect preventive measures such as patch management, system hardening and endpoint protection.
- Endpoint management as a key: Centralized management and security of end devices through measures such as patch management and System hardening reduce cyber risks and increase insurability.
- More benefits: Best practice Endpoint Management increases efficiency, promotes flexible working models such as the Modern Workplace and reduces IT costs in the long term.
Completed an insurance questionnaire? With our Endpoint Management as a Service, you can consistently and permanently meet your cyber insurance requirements — and protect yourself comprehensively.
1.What is cyber insurance?
Cyber insurance are specialized policies that protect companies from the financial consequences of cyber attacks and IT security incidents. These include, for example, costs for recovering data, legal disputes, data breaches or even business interruptions. At the same time, however, insurers require companies to consistently take preventive security measures to minimize their risk — and this is exactly where endpoint management plays a central role.
Not every company easily receives cyber insurance. Before concluding the policy, companies often go through a so-called risk dialogue. Based on a detailed analysis, insurers assess how well a company is positioned against cyber threats. The focus is on IT security strategy, the ability to react to incidents and the use of preventive measures.
Some companies fail in this assessment because basic security standards are missing — for example in patch management, system hardening, or endpoint protection. Others underestimate the requirements that insurers place on clean cyber hygiene.
Typical reasons why companies are rejected:
- No automated processes for updates and security patches.
- Lack of multi-factor authentication or inadequate rights management.
- Outdated or unprotected devices.
Risk assessment process:
- Risk dialogue: An initial conversation between insurer and company to identify potential weak points.
- Analysis phase: The IT infrastructure is reviewed in detail, including endpoint security measures and backup solutions.
- Assessment and Conclusion: Companies with an incomplete security strategy either do not receive insurance or only on unfavorable terms.
“Although small companies are also increasingly suffering from hacker attacks, they generally have a better chance of getting a policy at all. For companies with a turnover of over 10 million euros, around every second application is now rejected due to inadequate IT security. From October 2024, it may be even more difficult for companies to take out cyber insurance because that is when the second Network and Information Security Directive (NIS 2 Directive) comes into force.”
-Commercial insurance broker Finanzchef24 in kNewspaper
2. Cyber insurance requirements
Cyber insurers set clear conditions before policies are issued or favourable conditions are granted. These so-called Cyber hygiene requirements aim to minimize the risk of cyber attacks and often require the following measures:
- patch management: Security gaps must be closed promptly through updates to reduce attack risks.
- System hardening: Systems and applications should be configured according to recognized security standards, such as the CIS Benchmark. This includes measures such as multi-factor authentication and a principle of minimum rights allocation (least privilege).
- Endpoint Protection: Modern protection solutions such as Endpoint Detection and Response (EDR) make it possible to identify weak points at an early stage and ward off attacks.
Endpoint Management plays a central role in this by making it possible to implement these measures. It offers the centralized management and security of end devices such as laptops, mobile devices, but also industrial devices such as cash registers and terminals. Endpoint Management ensures compliance with these requirements through automated updates, extensive configuration sets, and AI-powered monitoring tools.
3. How endpoint management improves cyber insurability
Endpoint management includes the central management and security of end devices such as laptops, desktops and mobile devices, but also OT such as cash registers, kiosk terminals or industrial PCs.
This discipline forms the basis for meeting the above requirements. The importance of these measures is shown in a recent survey of 1,370 companies. 76% of respondents saidthat their investments in cyber defense led directly to improved insurance status. 67% benefited from lower premiums, while 30% better insurance conditions received.
Endpoint Management specifically supports companies by:
- Automated patch management, which ensures that systems are always up to date.
- System hardening with up to 800 security configurations that minimize points of attack.
- Proactive threat detection and response using tools such as Microsoft Defender for Endpoint.
According to the K newspaper German companies are increasingly investing in such security solutions to protect themselves against cyber risks. This shows how relevant the topic is for the economy — particularly in industries such as plastics processing.
4. The benefits go beyond insurance
While endpoint management addresses key requirements of cyber insurers, it also offers additional benefits for companies:
- Efficiency through client management: Centralized management of devices saves time and resources, as installations, configurations, and maintenance can be automated.
- Promoting a modern workplace: Flexibility and security are combined through solutions such as Unified Endpoint Management (UEM), which increases productivity and employee satisfaction in modern work environments.
- Long-term cost savings: Proactive security measures not only reduce the risk of a cyber attack, but also reduce the overall costs of IT operations and claims management.
The synergy between security measures and operational benefits makes endpoint management an indispensable element in every company's IT strategy.
5. SOFTTAILOR as a reliable partner for endpoint management
Implementing complex security requirements requires in-depth expertise and suitable solutions that can be seamlessly integrated into existing IT environments. Trust companies with 100 to over 10,000 devices SOFTTAILOR when introducing and optimizing all important measures such as UEM solutions, patch management, system hardening and endpoint protection, in short: in everything that has to do with endpoint management & security.
With many years of experience in endpoint management, SOFTTAILOR offers tailor-made solutions that not only improve cyber insurability, but also increase the overall security and efficiency of IT systems. By using leading technologies such as microsoft and Ivanti SOFTTAILOR ensures that companies can reliably protect and manage their devices — from implementation to ongoing support.
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Especially in the context of cyber insurance, SOFTTAILOR can use targeted security measures to help companies meet insurers' requirements while benefiting from better premiums and conditions.
6. Conclusion
Endpoint management is much more than just a technical discipline — it forms the basis for a comprehensive security concept that meets the requirements of cyber insurance and at the same time optimizes a company's IT landscape. Patch management, system hardening and endpoint protection are not only essential to ward off attacks, but also to ensure insurability and benefit from improved conditions.
Companies that invest in these measures are better prepared against cyber risks and at the same time can reduce costs in the long term — a win-win situation for security and economic efficiency. With an experienced partner such as SOFTTAILOR at your side, the implementation of these measures is not only made easier, but also optimally tailored to the individual requirements of each company. Make an appointment for your initial consultation now here.
Dorian has been involved in corporate and IT strategy since 2011. Due to the endpoint security deficiencies of many companies and the information overload, he developed the endpoint strategy. Dorian is co-founder of the “Endpoint Management” expert group at IAMCP e.V.
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