Cyber Insurance Audit Checklist: Preparing Your Business for Insurer Review

A cyber insurance audit checklist prepares your business for the security review Canadian insurers conduct during the application, renewal, or claims process by ensuring your controls are in place and your documentation is organized before the audit begins.

What Is a Cyber Insurance Audit?

A cyber insurance audit is a review conducted by an insurer or their third-party assessor to verify that the security controls you reported on your application are actually in place. As Canadian insurers move toward evidence-based underwriting, audits have become more common — both at initial application and at renewal. Having a structured checklist ensures you are not caught unprepared.

What Does a Cyber Insurance Audit Check?

Cyber insurance audits in Canada typically review: MFA enforcement across all systems, EDR deployment and management status, backup configuration and restore test records, patch management currency and processes, incident response plan documentation, and security awareness training records. Some audits also include technical scans for externally visible vulnerabilities or configuration weaknesses.

Identity and Access Management Audit Checklist

Verify MFA is enforced — not just available — on all email accounts, cloud applications, VPN access, and privileged admin accounts. Confirm that legacy authentication protocols that bypass MFA are disabled. Document your access control policy, including how access is granted, reviewed, and revoked for employees and contractors.

Endpoint Security Audit Checklist

Confirm EDR is deployed on all endpoints — workstations, laptops including remote worker devices, and servers. Verify the EDR solution is actively managed and that alerts are being reviewed. Document which EDR product you use and confirm coverage percentage. Ensure all devices are running supported operating systems with automatic updates enabled.

Backup and Recovery Audit Checklist

Confirm daily backups are running and logging success or failure. Verify at least one backup copy is stored in a location inaccessible from your primary network. Produce records of your most recent restore test, including the date, what was restored, and the result. Confirm backup retention periods align with your recovery objectives and any regulatory requirements.

Policy and Documentation Audit Checklist

Gather your information security policy, acceptable use policy, incident response plan, and vendor management policy. Confirm these documents are dated, signed, and reviewed within the past 12 months. Compile security awareness training completion records showing all employees have completed training in the past year.

Frequently Asked Questions

What does a cyber insurance audit checklist cover?

A cyber insurance audit checklist covers: MFA enforcement on all accounts and systems, EDR deployment on all endpoints, backup frequency and restore test documentation, patch management currency, incident response plan, security awareness training records, and email authentication configuration.

What happens if you fail a cyber insurance audit?

If you fail a cyber insurance audit, the insurer may apply coverage exclusions for the gaps identified, increase your premium, require remediation before binding coverage, or decline to offer coverage.

How often do cyber insurers conduct audits?

Cyber insurance audits occur most commonly at initial application and at annual renewal. Some insurers also conduct mid-term audits if they have reason to believe a material change has occurred in the insured’s security posture.