Why Cyber Essentials Matters for Your Cyber Insurance in 2025

By Gareth Cross | November 22, 2025

Cyber insurance continues to evolve rapidly, and insurers are tightening their requirements. Today, many UK businesses are discovering that Cyber Essentials certification is now a major factor in whether they can even get cyber insurance — let alone secure an affordable premium.

If you’re wondering how Cyber Essentials impacts your insurance options, this guide breaks it all down clearly.

What Is Cyber Essentials?

Cyber Essentials is a UK Government-backed cyber security standard created by the National Cyber Security Centre (NCSC).

It sets out five key technical controls that protect your business from the most common cyber threats.

🔗 External link:
NCSC – Cyber Essentials Overview
https://www.ncsc.gov.uk/cyberessentials/overview

Why Cyber Insurers Require It

Cyber attacks are increasing, and insurers need to understand whether a business is taking basic steps to reduce risk. Cyber Essentials provides that assurance.

Many major insurers now use Cyber Essentials as a minimum baseline, including:

  • Aviva
  • Hiscox
  • AIG
  • Chubb
  • AXA

These organisations follow standards aligned to the FCA’s cyber guidance, which also emphasises the importance of strong controls.

🔗 External link:
FCA – Cyber Security Guidance
https://www.fca.org.uk/firms/cyber-resilience

Do You Get Cyber Insurance With Cyber Essentials?

Yes — Cyber Essentials (the Basic level) includes free £25,000 cyber insurance through IASME, provided your organisation meets the criteria.

🔗 External link:
IASME – Cyber Essentials Insurance Details
https://iasme.co.uk/cyber-essentials/cyber-liability-insurance/

This built-in cover can help with:

  • Ransomware attacks
  • Data breaches
  • Incident response costs
  • Business interruption
  • Forensic investigation
  • Legal support

While not a full policy, it provides a valuable safety net and reduces the cost of additional insurance.

How Cyber Essentials Lowers Insurance Premiums

Cyber Essentials gives insurers confidence that your business has:

  • Strong password and MFA controls
  • Secure device configurations
  • Up-to-date systems
  • A protected network perimeter
  • Reduced likelihood of malware or unauthorised access

This often results in:

  • Lower premiums
  • Simpler applications
  • Fewer exclusions
  • Improved claim outcomes

Insurers are increasingly refusing claims where basic controls were missing — Cyber Essentials protects you from this scenario.

Is Cyber Essentials Required for Cyber Insurance?

Not by law — but in practice, yes for most insurers.

Some will not issue a policy without Cyber Essentials.
Others reduce payouts if CE requirements were not met at the time of attack.
Many require CE before renewal.

The landscape is shifting strongly toward Cyber Essentials as a standard requirement, especially for SMEs.

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How MB Digital Helps You Achieve Cyber Essentials

If you’re preparing for insurance renewal, getting Cyber Essentials in place early helps avoid delays and unexpected premium increases.

MB Digital provides:

  • Pre-assessment readiness checks
  • Device configuration for compliance
  • Security policy creation
  • Microsoft 365 security hardening
  • Ongoing cyber monitoring
  • Support for both Cyber Essentials and Cyber Essentials Plus

🔗 Internal link:
Learn more about MB Digital’s Cyber Essentials Certification Support

🔗 Internal link:
Explore Our IT Security Services

The Bottom Line

Cyber Essentials is now a critical part of modern cyber insurance. It provides:

  • Lower premiums
  • Easier applications
  • Built-in insurance cover
  • Stronger claim validity
  • Better protection against attacks

If you want to strengthen your insurance position and improve your cyber resilience, Cyber Essentials is the smartest place to start.

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