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8 October 2025
At a Glance
UK cyber insurers now require clear evidence of security controls before offering cover or favourable terms. IT audits and health checks identify gaps, document compliance, and demonstrate readiness. When completed 60–90 days before renewal, they help businesses meet insurer requirements, avoid exclusions, and in many cases, reduce premium costs.
The Link Between an IT Audit and Cyber Insurance
Cyber risks are a growing concern for UK businesses. Rising costs from breaches and downtime are putting extra pressure on leaders. This makes it important to review your security and insurance together. An IT audit and cyber insurance can complement each other in this process.
An IT audit gives a clear picture of how your systems are performing. It identifies weaknesses and helps protect important data. This visibility also shows insurers that your IT is actively monitored and maintained.
Cyber insurance provides financial protection if your systems are compromised. When insurers see evidence from IT audits, they can offer better terms and sometimes lower premiums.
Cyber insurance IT requirements in the UK have been getting stricter as underwriters demand stronger proof of security. Therefore, regular IT health checks are becoming essential to meet these expectations.
In this blog, we’ll explain how IT audits reduce cyber insurance premiums and provide you with a cyber insurance readiness checklist. You’ll also find practical steps to prepare your IT systems and documentation for renewal with support from Redpalm.
Why UK Cyber Insurance Premiums Are Rising
Cyber insurance costs have been climbing across the UK as underwriters face more frequent and severe claims. Breaches, ransomware attacks, and operational downtime are creating a hardening market where insurers must manage higher risk.
Insurers now expect businesses to provide clear evidence of robust security. This includes showing active monitoring, patch management, identity and access management, and data backup procedures.
Many UK insurers also look for recognised security standards. Certifications like Cyber Essentials and ISO 27001 show that IT systems follow industry best practices. When your business complies with these frameworks, it shows insurance companies that you take cyber security seriously.
If you’re looking for an IT service provider that can build a cyber security plan tailored to your business, you can count on Redpalm. We’re a certified body for Cyber Essentials and IASME Cyber Assurance Level 1 and Level 2.
How IT Health Checks Reduce Premium Costs
An IT health check is a focused review of your systems to identify weaknesses and potential risks. It differs from a full IT audit because it is designed to quickly highlight issues that insurers care about.
These checks help demonstrate your readiness for cyber insurance. By identifying gaps and building a strong cyber security strategy, you give insurers confidence in your protection measures.
Often, you’ll find some issues during the process of an IT health check that you didn’t even know existed. Fixing each issue can reduce the likelihood of claims and improve your terms with underwriters.
When you combine regular IT health checks with IT audit and cyber insurance, you can show a proactive approach that supports lower premiums and stronger coverage.
Common Gaps & Missed Savings
Many UK SMEs face similar IT infrastructure challenges that can directly affect their cyber insurance premiums. Missing multi-factor authentication or weak vendor management are frequent issues. Underwriters also notice outdated patching schedules and weak backup testing.
These gaps can lead to higher premiums or even denied claims if an incident occurs. For instance, a ransomware attack on a system without tested backups could result in significant losses that insurers might refuse to cover.
Skipping an IT audit conducted by a trusted managed service provider often means these weaknesses go unnoticed until it’s too late. Conducting regular IT health checks helps your business meet the cyber insurance IT requirements in the UK before insurers evaluate your business.
It is important to plan audits carefully. Completing your IT audit or health check at least 60-90 days before renewal gives you time to fix any issues and prepare the documentation your insurer needs.
IT Audits Best Practices and Redpalm’s Support
Preparing for a cyber insurance renewal means showing insurers that your IT is actively managed and that any risks are addressed promptly. Clear documentation from your IT audit or health check helps demonstrate compliance and supports better insurance terms.
Redpalm guides businesses through this process by helping organise records and highlight improvements in a supportive way. We can help you take a structured approach with an IT audit and cyber insurance to show underwriters that your business takes security seriously, leading to reduced premium costs.
We’ve also made a cyber insurance readiness checklist to help you apply best IT audit practices before renewal:
-Schedule an IT health check at least 60 days before renewal
-Gather documentation from your latest IT audit, including logs and test results
-Ensure MFA, endpoint protection, and backup policies are fully implemented
-Review your network security posture and address any gaps quickly
-Prepare a summary of compliance frameworks, like Cyber Essentials or ISO 27001
-Engage your insurance broker early to review updated IT evidence
Contact Redpalm to Keep Your IT Systems in Top Shape
Redpalm is a managed service provider (MSP) and a trusted cyber security partner. We equip your business with advanced IT infrastructure to swiftly identify and neutralise any security risks.
Our wide range of services includes technology procurement, vulnerability assessments, endpoint management, and more.
To learn more about our managed IT services, click here or contact us to schedule an appointment today.
