What underwriters require — and how to document it before your next renewal

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Cyber Insurance Readiness Checklist for Arizona Businesses

Article

What underwriters require — and how to document it before your next renewal

Mar 8, 2026

Written by

AEGITz

Back

Cyber Insurance Readiness Checklist for Arizona Businesses

Article

What underwriters require — and how to document it before your next renewal

Mar 8, 2026

Written by

AEGITz

Back

Cyber Insurance Readiness Checklist for Arizona Businesses

Article

What underwriters require — and how to document it before your next renewal

Mar 8, 2026

Written by

AEGITz

Cyber insurance underwriters have fundamentally changed how they evaluate Arizona businesses since 2020. This checklist translates current carrier requirements into plain language — so you know exactly where you stand before your broker submits your application. In Arizona, a top-10 FBI IC3 state for cybercrime losses, carriers apply heightened scrutiny to applications from businesses without documented security controls. Misrepresentation on an application — intentional or not — can result in claim denial.

Cyber insurance underwriters have fundamentally changed how they evaluate Arizona businesses since 2020. This checklist translates current carrier requirements into plain language — so you know exactly where you stand before your broker submits your application. In Arizona, a top-10 FBI IC3 state for cybercrime losses, carriers apply heightened scrutiny to applications from businesses without documented security controls. Misrepresentation on an application — intentional or not — can result in claim denial.


How to Use This Checklist

Work through each section with your IT provider. For each item, identify:

•       Whether the control is in place (YES / NO / PARTIAL)

•       What documentation exists to prove it

•       Whether the documentation is sufficient for a post-incident audit

Bring your completed checklist to your insurance broker meeting. This document demonstrates proactive risk management and can support premium negotiations.


 


Section 1: Multi-Factor Authentication

This is the #1 underwriter requirement. Carriers now require MFA not just “somewhere” but comprehensively, with evidence.

Requirement

What Carriers Want to See

Status

MFA on all business email

Screenshot of MFA enforced via policy (not just user-optional)

YES / NO / PARTIAL

MFA on all remote access (VPN, RDP)

VPN config showing MFA required; no open RDP to internet

YES / NO / PARTIAL

MFA on all privileged/admin accounts

Admin accounts require MFA; separate from standard accounts

YES / NO / PARTIAL

MFA on all critical business apps

CRM, accounting, HR, banking — all require MFA at login

YES / NO / PARTIAL

MFA enforcement is policy-based

Users cannot bypass or disable MFA; IT controls enforcement

YES / NO / PARTIAL

 


PARTIAL MFA is a yellow flag for carriers. “Most of our users have it” is not the same as “MFA is enforced for all users on all covered systems.” Know your actual coverage before you attest.


Section 2: Endpoint Security

Requirement

What Carriers Want to See

Status

EDR on all endpoints

EDR software (not basic AV) on 100% of company devices; license count matches device count

YES / NO / PARTIAL

EDR is actively monitored

Alerts reviewed by IT team or managed SOC; incident response process exists

YES / NO / PARTIAL

All devices on supported OS

No Windows 7, 8, Server 2008 or other EOL systems in production

YES / NO / PARTIAL

Full-disk encryption on laptops

BitLocker or FileVault enabled; enforced via MDM policy

YES / NO / PARTIAL

MDM on mobile devices

All company mobile devices enrolled; remote wipe enabled

YES / NO / PARTIAL

 


Section 3: Backup and Recovery

Requirement

What Carriers Want to See

Status

Automated daily backups

Backup logs showing daily successful completion for 30+ days

YES / NO / PARTIAL

Backups isolated from production network

Backups stored off-site, in separate cloud tenant, or air-gapped; not on same network as endpoints

YES / NO / PARTIAL

Backups are ransomware-resistant

Immutable storage or versioning that prevents attacker deletion or encryption

YES / NO / PARTIAL

Backups tested for restoration

Documented test restore within last 90 days; results on file

YES / NO / PARTIAL

RTO/RPO targets defined

Recovery time and recovery point objectives documented

YES / NO / PARTIAL

 


This is the section most often misrepresented on Arizona applications. Cloud sync (OneDrive, Dropbox) is NOT the same as a backup. If the ransomware encrypts your synced files, your “backup” is also encrypted.


Section 4: Email Security

Requirement

What Carriers Want to See

Status

Advanced email filtering

Anti-phishing, anti-malware, sandboxing (not just basic spam filter)

YES / NO / PARTIAL

Domain authentication configured

SPF, DKIM, and DMARC all configured and in enforcement mode

YES / NO / PARTIAL

External email labeling

Emails from outside the organization are labeled to alert recipients

YES / NO / PARTIAL

BEC awareness training

Staff trained specifically on business email compromise; documented

YES / NO / PARTIAL

 


Section 5: Access Control

Requirement

What Carriers Want to See

Status

Principle of least privilege

Users have access only to systems required for their role; access reviewed annually

YES / NO / PARTIAL

Privileged accounts separated

Admin accounts are distinct from daily-use accounts; documented

YES / NO / PARTIAL

Formal offboarding process

Access revoked within 24 hours of termination; documented process

YES / NO / PARTIAL

No shared credentials

Every user has unique login; shared accounts eliminated or documented with justification

YES / NO / PARTIAL

Vendor access reviewed

Third-party vendor access audited at least annually

YES / NO / PARTIAL

 


Section 6: Incident Response

Requirement

What Carriers Want to See

Status

Written IR plan exists

Documented incident response plan with named roles and contact list

YES / NO / PARTIAL

IR plan has been tested

Tabletop exercise or real-world test within last 12 months; documented

YES / NO / PARTIAL

IT provider has 24/7 availability

SLA with defined emergency response time; after-hours contact documented

YES / NO / PARTIAL

Forensics vendor identified

Preferred forensics firm or insurer-provided firm pre-identified

YES / NO / PARTIAL

Breach counsel identified

Outside legal counsel familiar with Arizona ARS § 18-552 breach notification law identified

YES / NO / PARTIAL

 


Section 7: Security Awareness Training

Requirement

What Carriers Want to See

Status

Annual training for all staff

Training completion records showing 100% staff participation; dated

YES / NO / PARTIAL

Phishing simulations conducted

Quarterly phishing simulation results; click rate tracked over time

YES / NO / PARTIAL

New hire training at onboarding

Security training documented as part of onboarding checklist

YES / NO / PARTIAL

BEC-specific training content

Training explicitly covers wire transfer fraud and business email compromise

YES / NO / PARTIAL

 


Documentation You Should Have Ready

When your carrier conducts a post-incident audit in Arizona, these are the documents they will request. Have them ready before the incident, not after.

□      ☐ MFA configuration screenshot from admin portal (dated)

□      ☐ EDR deployment report showing all licensed endpoints (dated)

□      ☐ Backup completion logs for last 30 days

□      ☐ Most recent backup restoration test report with date and result

□      ☐ Security awareness training completion records with dates

□      ☐ Most recent phishing simulation results

□      ☐ Written incident response plan (dated, version controlled)

□      ☐ Access review documentation (who reviewed, when, what was changed)

□      ☐ IT provider SLA documentation

□      ☐ Offboarding checklist with timestamps for recent terminations

 


AEGITz provides all clients with a documentation package aligned to current carrier requirements. If you’re preparing for a renewal or want to verify your current posture, ask about our Cyber Insurance Readiness Assessment.

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