How to avoid a 340% premium increase and actually strengthen your cybersecurity posture.

Introduction: Your Renewal Just Got Personal

Your cyber insurance renewal is coming.
And this year it’s about to get personal. 💥

A Michigan accounting firm called me last month. Their renewal jumped 340%.
No breach. No claim.

Just new questions they couldn’t answer “yes” to.

Here’s the truth: insurance companies lost billions on cyber claims over the last few years. Now they’re done playing nice.
Your 2025 renewal will feel like a compliance audit with a bad attitude.

But here’s what they’re not telling you, you can pass this test.
You just need to know what’s coming.

The New Reality: Why 2025 Renewals Are Different

Remember when cyber insurance was easy?
Fill out a form, pay a premium, move on?

Those days are gone.

What Changed

• 💰 Average breach costs hit $4.88 million (up 39% since 2020)

• 💻 Ransomware payouts now average $1.5 million

• 📉 Carriers paid out more than they collected three years in a row

• 📈 Michigan saw a 67% increase in reported cyber incidents last year

Your insurance company isn’t your friend anymore.
They’re your auditor.

The 2025 Questionnaire: What’s Actually on It

Forget the one-page renewal form.
Expect 50–70 questions that read like a security certification exam.

The Big Five Deal-Breakers

(Answer “no” to any of these and expect either denial or a massive premium increase.)

1. Multi-Factor Authentication (MFA)

The Question:
“Is MFA required for all remote access, email, and administrative accounts?”

Translation:
Can your receptionist’s stolen password take down your business?

The Michigan Reality:
A manufacturing client in Grand Rapids skipped MFA on a legacy system, their premium jumped from $8,000 to $34,000.

Your Fix:

• Enable MFA on everything

• Document your MFA policy

• Use conditional MFA for better user experience

• Keep proof of implementation

2. Endpoint Detection & Response (EDR)

The Question:
“Do you have EDR deployed on all endpoints with 24/7 monitoring?”

Translation:
When ransomware hits at 3 AM, who’s watching?

Your Fix:

• Deploy EDR across all devices

• Ensure 24/7 monitoring (MDR if needed)

• Keep documentation

• Test quarterly

3. Privileged Access Management (PAM)

The Question:
“How do you control and monitor admin access?”

Translation:
Can one IT credential destroy your business?

Your Fix:

• Implement PAM tools (even basic ones count)

• Document who has admin access — and why

• Turn on audit logging

• Review access quarterly

4. Backup Testing & Air-Gapping

The Question:
“Are backups air-gapped and tested monthly?”

Translation:
If ransomware hits, can you actually restore?

Your Fix:

• Implement air-gapped or immutable backups

• Test restorations monthly

• Document results

• Store backups in multiple locations

5. Security Awareness Training

The Question:
“Do all employees complete quarterly training with simulated phishing tests?”

Translation:
Can your staff spot a fake “UPS delivery” email?

Your Fix:

• Quarterly training + monthly phishing tests

• Track completion rates (95%+)

• Keep proof of training

Michigan-Specific Landmines

Michigan businesses face unique insurance scrutiny depending on industry:

Manufacturing

• OT/IT network segmentation

• Industrial control system (ICS) assessments

• Internet exposure of production systems

Healthcare & Dental

• Cloud-based practice software with MFA

• Encryption of PHI at rest and in transit

• Security for connected medical devices

Professional Services (Law, Accounting, Real Estate)

• Coverage for client data breaches

• Secure client portals

• Wire-fraud prevention process

Your 90-Day Pre-Renewal Battle Plan

Days 1–30: Assessment

• Review last year’s app

• Identify “no” answers

• Budget for upgrades

• Select vendors

Days 31–60: Implementation

• Deploy MFA

• Roll out EDR/MDR

• Set up backup testing

Days 61–90: Documentation

• Update security policies

• Gather proof of controls

• Conduct a pre-renewal audit

The Money Talk

Control Typical Cost Value

MFA $15–50/user/year Essential

EDR $8–15/endpoint/month Non-negotiable

Training $3–8/user/month Human firewall

Backup $200–2,000/month Recovery lifeline

💡 ROI: Every $1 spent on security saves $3–$5 on premiums.

5 Insider Secrets Insurance Carriers Don’t Tell You

1. Submit Early: 60 days ahead = better rates.

2. Shop Around: Rates can vary 200%.

3. Earn the “Good Student” Discount: SOC 2 or ISO 27001 = 15–30% lower premiums.

4. Use a Specialist Broker: Cyber experience matters.

5. Document Your Roadmap: “Implementing by Q2” beats “No.”

Red Flags That Tank Renewals

Instant Denials

• No MFA or EDR

• Outdated backups

• Old training program

• Undisclosed breaches

Premium Killers

• Shared admin passwords

• Public RDP

• No incident response plan

• Personal devices without controls

Your Monday Morning Renewal Checklist

✅ Call your broker and ask:

• What’s new for 2025?

• Who’s still writing in Michigan?

• What controls reduce premiums fastest?

✅ Audit your environment:

• MFA?

• EDR?

• Backup tested?

• Admin rights reviewed?

• Training completion tracked?

✅ Start the conversation:

• Budget meeting

• Vendor quotes

• Implementation timeline

• Monthly progress checkpoints

The Bottom Line

Your 2025 cyber insurance renewal isn’t just paperwork.
It’s your survival plan.

The firms that will thrive:

• Started early

• Implemented the Big 5

• Documented everything

• Treated security as an investment

The ones that won’t:

• Waited too long

• Negotiated instead of implemented

• Ignored broker guidance

Your clients trust you with their data.
Your employees trust you with their livelihoods.
Your insurance company? They just trust the questionnaire.

✅ Make sure you can answer “yes.”

Need Help?

Big Water Technologies helps Michigan SMBs meet cyber insurance requirements — and lower premiums while improving security.

📧 [email protected]
🔗 Get your free renewal readiness assessment