Cyber insurance is no longer just a “nice to have.” In 2025, it’s become a must for manufacturers and distributors who rely on digital tools, connected machines, and cloud services. But passing a cyber insurance audit is getting harder. Many businesses are seeing their policies denied, premiums rise sharply, or exclusions added that leave them exposed. Insurance providers now ask for more than just a signed form. They want clear proof that your systems are secure. If you can’t show that, your application may not go through.

Why audits fail:

• No multi factor authentication (MFA)
• Old or unsupported hardware or software
• No clear cybersecurity policies or training
• No disaster recovery plans
• Missing records of past risk checks

The good news is. You don’t have to fix all of this alone. A Managed Service Provider (MSP) with a focus on cybersecurity can help you meet every audit requirement without overloading your internal IT team.

What Insurers Are Looking for in 2025

Cyber insurance providers have raised their standards. They’re no longer just asking if you have antivirus software, they want to see that your business has the right protections in place, and that those protections are actually being used and reviewed.

Here are the core items most policies ask for in 2025

• Multi Factor Authentication (MFA)

Required for all users, especially for remote access, admin accounts, and email systems.

• Endpoint Detection and Response (EDR)

This tool watches computers and devices for strange behavior and can shut down threats in real time.

• Backup and Disaster Recovery Plans

You must be able to show how data is backed up, how often, and how quickly it can be restored after an attack.

• Incident Response Plan

A step by step document that explains how your company will respond if you get hit by ransomware or another cyberattack.

• Security Awareness Training

Employees should be trained regularly to avoid phishing scams, fake websites, and weak passwords.

• Risk Assessments

Insurers want to see that you review your systems regularly to find and fix weak points.

New Trends in Underwriting

Insurance companies are not just checking boxes, they want evidence.

• Documentation Matters

It's not enough to say you have a plan. You need to show the written policies, training records, recovery test results, and reports from risk assessments.

• Proof of Action

Saying “we have backups” isn’t enough. You must show that backups are working and tested.

Why Manufacturers and Distributors Struggle

For companies in manufacturing and distribution, passing a cyber insurance audit is harder than it is for a typical office based business. Here’s why.

1. Complex OT/IT Environments

You often have a mix of Operational Technology (OT) and Information Technology (IT). Machines on the shop floor may run on old systems that can’t be patched. These machines may not support modern security tools like MFA or EDR.

2. Compliance Fatigue

You might already be trying to follow rules like

• CMMC (for Department of Defense suppliers)
• NIST SP 800-171 / 800-82
• ISO 27001

Trying to add insurance audit requirements on top of these can overwhelm your staff.

3. Small or Overworked IT Teams

Many manufacturers don’t have a full time cybersecurity expert. One or two people may be handling all support, upgrades, and daily operations. They don’t have time to write policies, set up 24/7 monitoring, or keep audit records.

4. Missing Monitoring and Logs

Insurers want to see that you’re watching for threats and keeping logs of security events. Without the right tools, you won’t have the records needed to prove compliance.

The Result?

• Denied coverage
• Higher premiums
• Limited policy terms or exclusions for key risks

How an MSP Helps You Pass the Audit

A cybersecurity focused MSP helps you check every box that insurers ask for. More importantly, they give you the records and tools you need to prove it.

Here’s what they do:

1. Risk Assessment and Remediation Plan

The MSP starts by checking your network, systems, software, and practices. They document what’s missing and build a plan to fix those gaps. This report becomes your starting point for getting audit ready.

2. Setup of Cybersecurity Tools

They install and manage the tools insurance companies want to see

• MFA across all key systems
• EDR to monitor all devices
• Firewalls to control network traffic
• Logging and Alerts to detect threats

3. Written Policies and Procedures

Many companies fail audits because they can’t show written plans. An MSP helps create these documents.

• Data backup plan
• Incident response plan
• Acceptable use policy
• Access control policy

These are written in plain terms, matched to insurance needs.

4. Cybersecurity Awareness Training

The MSP provides regular training for employees, often using short online lessons or live sessions. They also keep logs to prove who completed the training and when.

5. Incident Response Planning and Practice

They help you build a step-by-step response plan and run mock exercises. That way, everyone knows what to do if an attack happens—and you can show the insurer that you’re ready.

6. Documentation and Proof for Insurers

An MSP gathers reports, logs, screenshots, and training records. They organize these into a file you can submit with your insurance application or renewal.

7. Ongoing Monitoring and Security Checks

Passing an audit once isn’t enough. Requirements apply all year. MSPs keep watch over your systems 24/7. They scan for weak points, update your tools, and respond quickly to threats.

Benefits of Partnering with a Cybersecurity Focused MSP

Partnering with a cybersecurity focused MSP gives manufacturers and distributors the support they need to meet insurance requirements, reduce risks, and ease the pressure on internal teams. Here are the main benefits of working with a trusted MSP.

Faster Insurance Approval

Insurers prefer to work with companies that already have strong protections in place. With an MSP’s help, you meet their list without guessing or rushing last minute fixes.

Lower Premiums

A strong security setup can help reduce your cyber insurance costs. Insurers may offer better prices or higher coverage amounts if you meet their top requirements.

Easier Renewals

When it’s time to renew your policy, the MSP makes it simple to update your documents and prove continued compliance. This can help you avoid gaps in coverage.

Better Insurability

Some companies are now being told they’re “too risky” to insure. Working with an MSP shows insurers that you’re serious about protecting your systems and data.

Less Stress for Your IT Team

Your internal IT staff can stay focused on operations while the MSP handles audits, updates, and reports. You get expert support without needing to hire more people.

Peace of Mind

You’re not guessing what insurers want, you’re meeting the exact standards they ask for. The MSP speaks the same language the underwriters do.

Conclusion

Cyber insurance audits are stricter than ever. In 2025, failing an audit can cost you real money either through higher premiums or a total denial of coverage. That’s where a trusted MSP can help. From setting up MFA and EDR to writing policies and collecting audit evidence, the right partner can take the pressure off your team and help you secure the coverage your business needs. Consilien IT Company works with manufacturers and distributors to make cyber insurance audits easier. We help reduce your risks, improve your systems, and meet insurance requirements with full documentation and expert support.

Don’t wait until your application is denied. Contact Consilien IT Company today to prepare for your cyber insurance audit and protect your operations from growing digital threats.