With the rising frequency and cost of cyberattacks, cyber insurance providers are tightening their policies — and the requirements to qualify for or renew coverage are becoming more rigorous.
For legal and financial firms, simply having a policy in place is no longer enough. Underwriters want proof that your firm takes cybersecurity seriously — and your IT setup needs to reflect that.
Insurers have shifted focus from just reactive cover to proactive risk prevention. That means firms must show that they’ve implemented the right technologies, policies, and protections — before a claim ever arises.
Here are some of the most common areas underwriters now assess:
Multi-Factor Authentication (MFA):
Required on all remote access systems, cloud services, and admin accounts
Often a minimum condition for coverage
Endpoint Detection and Response (EDR):
Advanced monitoring tools that detect suspicious activity
Shows your firm can prevent, isolate, and respond to threats quickly
Regular Backups — with Testing:
Encrypted, off-site backups that are tested regularly
Demonstrates your ability to recover from ransomware or data loss
User Awareness Training:
Regular phishing simulations and training sessions
Helps prove your people are part of your first line of defence
Patch Management and Software Updates:
Delays in patching known vulnerabilities are now a major red flag
Firms need a consistent, documented update policy
Legal practices handle highly sensitive, regulated client information. To meet insurance requirements and reduce premium hikes:
Ensure your systems are aligned with SRA guidance on cyber risk
Maintain access logs and audit trails to track system use
Protect client confidentiality with device encryption and role-based access
Firms that can demonstrate strong security protocols and regulatory compliance tend to benefit from lower premiums — and less hassle during the renewal process.
Accountancy firms are often targeted due to the financial data they manage. Underwriters now look for:
Proof of GDPR compliance and FCA-aligned controls
Clear audit logs and ability to demonstrate who accessed what and when
Business continuity plans to minimise disruption during cyber incidents
Even if you’ve never made a claim, your eligibility may be challenged if you can’t demonstrate the right IT controls.
Cyber insurers have become more strict on exclusions. If your IT doesn’t meet the baseline requirements set out in the policy, your cover may be invalid — even if you’ve paid your premium.
That means in the event of a cyberattack, your claim could be rejected due to:
Lack of MFA or endpoint protection
Missing or untested backups
Untrained users clicking on phishing links
What Firms Should Be Doing Now
At LawFinity, we help legal and finance firms build IT environments that not only reduce risk but also support cyber insurance eligibility.
We work with your leadership team to ensure:
Your firm has the right systems, documentation, and audit trails
You meet SRA, GDPR, and FCA-aligned expectations
Your policy isn’t invalidated by simple IT oversights
Want to stress-test your IT setup before your next renewal?
Book a no-pressure consultation and let’s ensure your cover works when you need it most.