Cyberattacks aren’t slowing down, and so neither are the demands from insurance providers. As ransomware groups grow more sophisticated and data privacy regulations tighten, cyber insurance companies are raising the bar accordingly. For Baltimore businesses, this means that simply having a policy is no longer enough. To qualify for coverage—or keep it—you need to prove your cybersecurity posture is up to scratch.
The challenge? Cyber insurance requirements are evolving quickly, and many small and midsized businesses are finding themselves unprepared. From stricter underwriting standards to new state-level laws, the landscape is shifting – and failing to keep up could mean denied claims, rising premiums, or no coverage at all.
In this blog, we’ll break down what’s changing, the cybersecurity controls you’ll need to stay compliant, and how business IT support in Baltimore can help your organization stay protected, insurable, and resilient.
Why Cyber Insurance Requirements Are Tightening
For cyber insurers, just having antivirus installed will no longer cut it. With the rising volume and cost of cyberattacks, especially with ransomware affecting 59% of organizations in the last year, insurance companies are introducing stricter underwriting processes to reduce their own exposure. That means more detailed questionnaires, audits of your cybersecurity infrastructure, and sometimes even mandatory minimum security standards before issuing or renewing a policy.
According to experts at Robertson Ryan Insurance, insurers are now looking for evidence of proactive cybersecurity practices—from multi-factor authentication to employee training—before they’re willing to offer coverage. Businesses that can’t demonstrate adequate defenses may be denied coverage or face significantly higher premiums.
For small and midsized businesses in Baltimore, it represents a major shift. Many have relied on basic controls or legacy systems, but that’s no longer sufficient. To qualify for coverage and meet insurer expectations, it’s essential to implement modern cybersecurity protections and work with trusted business IT support in Baltimore that understands the new risk landscape.
Essential Security Measures for Insurance Eligibility
To meet evolving cyber insurance requirements, Baltimore businesses must move beyond the basics. Insurers now expect to see a well-rounded cybersecurity strategy that includes proactive tools, training, and policies. Below are four must-have security measures that are becoming standard for coverage—and good practice for risk reduction.
Multi-Factor Authentication (MFA)
MFA is no longer optional. It adds a critical layer of security by requiring users to verify their identity with two or more methods—such as a password and a mobile code—before gaining access to systems or data. Coalition Cyber Insurance lists MFA as a key prerequisite for coverage, especially for email, remote access, and privileged accounts.
Cybersecurity Awareness Training
Your employees are your first line of defense – and unfortunately often your weakest link, with 95% of cybersecurity issues being linked to human error. Regular training helps staff recognize phishing emails, avoid suspicious links, and follow safe data handling practices. This not only reduces the likelihood of human error but also demonstrates to insurers that your business is committed to a strong cybersecurity culture.
Regular, Secure Data Backups
If ransomware hits, your ability to recover quickly depends on your backups. Coalition Cyber Insurance recommends secure, regularly tested backups that are stored off-site or in the cloud. Businesses without a reliable backup strategy face higher premiums, or worse, may not qualify for coverage at all.
Endpoint Detection and Response (EDR)
EDR solutions provide real-time monitoring of your network’s endpoints—laptops, desktops, and servers—allowing for rapid threat detection and response. Huntress, a leader in the EDR space, highlights it as crucial for small and midsized businesses facing growing cyber risks, with 65% of insurers requiring it for policy compliance.
These aren’t just checkboxes for insurance applications – they’re core components of any modern cybersecurity strategy. And if your business lacks the resources to implement them alone, partnering with business IT support in Baltimore can help you close the gaps quickly and affordably.
Regulatory Developments in Maryland
Insurance isn’t the only thing that’s changing; state regulations are evolving too. For businesses operating in Baltimore and across Maryland, staying compliant with new laws is essential not only for legal reasons but also for maintaining insurability. Cyber insurance providers are watching these developments closely, and your ability to meet regulatory requirements could directly impact your coverage.
Maryland Online Data Privacy Act (MODPA)
Set to take effect on October 1, 2025, MODPA will impose new obligations on how businesses collect, process, and protect personal data. The act is Maryland’s answer to growing consumer privacy concerns and mirrors elements of laws like the California Consumer Privacy Act (CCPA).
For Baltimore businesses, this means tightening data security policies, improving transparency around data use, and implementing safeguards to prevent unauthorized access. Falling short of these expectations could put you at risk of both regulatory penalties and insurance claim denials.
Senate Bill 207
This legislation requires insurance carriers in Maryland to promptly investigate and report cybersecurity events. While it directly applies to insurers, the ripple effect for businesses is clear: timely breach detection, reporting, and remediation are more important than ever. If your business is slow to identify a breach or fails to follow proper incident response procedures, you could face delays in coverage or even non-payment of claims.
These regulatory updates highlight a growing intersection between compliance and cybersecurity. With support from a reliable business IT support team in Baltimore, local organizations can stay ahead of legal changes, implement required controls, and avoid last-minute scrambles when laws take effect.
Compliance and Risk Management: Staying Ahead of the Curve
Insurance providers and regulators alike expect businesses to demonstrate proactive risk management well before an incident occurs. That means regular evaluation, documentation, and continuous improvement of your cybersecurity posture.
Here’s how Baltimore businesses can stay compliant and cyber-ready:
Conduct Regular Risk Assessments
Routine risk assessments help you identify vulnerabilities in your IT systems and processes. They’re essential for maintaining insurance eligibility and ensuring you’re aligned with current compliance standards like MODPA and industry-specific regulations.
Review and Update Policies
Security policies and procedures should be living documents rather than static checklists. Review them regularly to reflect changes in your systems, staff, or threat environment. Insurance carriers often request copies of these policies during the underwriting process.
Ongoing Employee Training
Even the best technology can’t compensate for human error. A strong culture of cybersecurity awareness—backed by regular training—helps reduce risk and demonstrates due diligence to insurers and regulators alike.
By prioritizing these best practices, businesses in Baltimore can avoid costly coverage gaps, reduce the risk of denial following a claim, and better protect sensitive data. And with guidance from expert business IT support in Baltimore, you don’t have to navigate it all alone.
TTP: Build a Strong Cybersecurity Foundation for Secure Coverage
Cyber insurance is changing – and fast. For businesses in Baltimore, the days of basic coverage without proof of robust cybersecurity are over. Stricter underwriting, evolving Maryland legislation, and rising cybercrime mean that insurance providers now demand more than policies – they want assurance that your business is truly protected.
At TTP, we offer expert business IT support in Baltimore to help you build the cybersecurity foundation you need to remain insurable and resilient. From risk assessments to compliance-ready solutions, we’re here to support your journey every step of the way.
By implementing essential security measures like MFA, data backups, EDR, and cybersecurity training, and staying informed about new regulations like MODPA and Senate Bill 207, your business can stay ahead of both threats and compliance requirements.
Don’t wait until a denied claim or cyber incident catches you off guard. Speak to our experts today to review your cybersecurity posture and make sure your coverage is secure.
