It’s in the news every day: cyber risks are no longer an abstract possibility—they are a daily reality. Data breaches, ransomware attacks, and other cyber incidents can disrupt operations, damage reputations, and cause significant financial losses. For many organizations, the cost of a major cyberattack can run into millions, not only because of direct damages but also due to regulatory fines, legal expenses, and loss of customer trust.
Unsurprisingly, more companies are choosing to insure themselves against the financial impact of cyber incidents. Cyber insurance policies have become an essential layer of protection. However, insurers are increasingly reluctant to provide blanket coverage without closely examining how well-prepared an organization really is. They want to know: What has the company done to reduce the likelihood of an attack, or at least to detect and contain one before it spreads?
Insurers demand preventive measures
When assessing an organization’s risk profile, insurers increasingly evaluate:
- The company’s specific situation – Industry sector, size, and the sensitivity of the data it processes all influence the level of risk.
- Existing security controls – Firewalls, endpoint protection, monitoring systems, and—more recently—advanced detection technologies.
- Preparedness and resilience – The ability not only to prevent attacks but also to detect them early and respond effectively.
This is why preventive detection tools, such as honeypots, are gaining the attention of insurers.
The role of honeypots in reducing risk
Honeypots, like those offered by SecurityHive, are designed to lure attackers into controlled environments. By doing so, they provide early warning signals of malicious activity inside a network. This gives organizations valuable time to respond before real damage occurs.
For businesses, investing in honeypots delivers two critical benefits:
- Stronger security posture – By detecting intrusions at an early stage, honeypots help prevent escalation and minimize potential damages.
- Better insurance conditions – Demonstrating that your organization uses advanced detection tools not only increases your chances of being accepted for cyber insurance but can also lead to more favorable premiums and terms.
Additional reasons insurers emphasize detection tools
Beyond reducing direct risk, insurers are pushing for preventive detection tools for several other reasons:
- Risk differentiation: Insurers want to separate proactive, well-protected companies from those that neglect cybersecurity. This allows them to tailor premiums fairly.
- Claims reduction: Preventive tools decrease the likelihood of large-scale incidents, which directly reduces the number and size of insurance claims.
- Regulatory compliance: Many sectors face strict requirements around data protection. Insurers expect clients to use technologies that support compliance.
- Market maturity: As cyberattacks grow more sophisticated, basic protection is no longer enough. Insurers view advanced detection capabilities as a new standard for responsible risk management.
A business decision with dual benefits
For decision makers, investing in technologies like honeypots is not only a matter of security—it is also a financial strategy. By lowering the risk of a major breach and by demonstrating preparedness, organizations strengthen their negotiating position with insurers. In an environment where cyber threats are escalating and insurance premiums are rising, this dual benefit is more relevant than ever.
Insurers increasingly require preventive detection tools because they reduce risk, improve resilience, and ensure fairer insurance conditions. For businesses, implementing solutions like SecurityHive’s honeypots means greater protection and better insurance opportunities—a win on both fronts.
