Cyber threats are hitting New Zealand businesses harder than ever but the financial impact of a breach isn’t always the biggest risk. The real danger could come later, when your cyber insurance claim is denied because your application wasn’t accurate, complete, or aligned with what’s actually in place.
In 2024 alone, cyber incidents cost New Zealanders an estimated $1.6 billion in financial losses, with SMEs facing an average breach cost of NZ$173,000. Yet, only 39% of small businesses have an incident response plan in place, a gap that can directly impact your insurability.
One small oversight can cost hundreds of thousands in uncovered losses and your reputation along with it.
Cyber insurance has evolved. What used to be a quick tick-box form is now a detailed risk assessment, and insurers are no longer taking applicants at their word. A single discrepancy or omission can lead to:
Claim rejection: If your answers don’t match reality, insurers can refuse to pay.
Delayed cover: Back-and-forth clarifications slow approvals, leaving you exposed.
Higher premiums: Missing controls or unclear answers make you look riskier than you are.
Unseen gaps in coverage: You may think you’re protected until the fine print proves otherwise.
The threat isn’t hypothetical. One in three New Zealand SMEs has faced a cyberattack in the past six months, and small businesses lose an average of NZ$15,600 per incident, even without factoring in legal, reputational, and long-term customer loss costs. If an inaccurate application causes your claim to be denied, these costs fall entirely on you.
Overstating security measures - claiming controls that aren’t fully implemented.
Incomplete breach history - leaving out “minor” incidents that insurers still consider relevant.
Generic or vague answers - failing to prove that policies and tools are active and effective.
Misinterpreting questions - answering based on assumptions instead of technical fact.
These aren’t just paperwork errors. They’re the difference between being paid out or being left to carry the full cost of a breach.
We don’t just fill in forms, we make sure your application reflects the truth of your security posture, in a way insurers understand and trust.
Our services range from:
Application Walkthrough - Step-by-step guidance to interpret insurer questions and provide strong, accurate answers.
Walkthrough + Control Verification - We verify your claims against technical reality, closing gaps before submission.
End-to-End Management - From environment assessment to form completion and submission, we handle the process for you.
Many providers walk away once the application is in. We stay with you, making sure the answers you gave remain true over time - because a claim could come 18 months after you apply.
With NSP, you also have access to:
24/7 Managed Detection and Response (MDR) to actively stop threats
vCISO advisory to align security with your business strategy
Incident response planning to ensure readiness
Ongoing security assessments to maintain compliance
Team cyber risk awareness training to ensure to minimise risk due to human error
When a client’s claim is denied due to inaccurate information, it doesn’t just hurt them, it can damage your credibility.
Partnering with NSP means:
Less chasing clients for technical detail - we get it directly from them.
Accurate, verified submissions - no guesswork.
Faster, smoother approvals - keeping clients protected sooner.
Enhanced client value - you’re the broker who can simplify the complex.
With the growing frequency of attacks and the rising financial impact, nearly half of SMEs targeted, with breach recovery often exceeding NZ$100k, brokers who ensure accurate, verified submissions are safeguarding not just their clients’ cover, but also their own credibility in a competitive market.
1. Is cyber insurance mandatory for businesses in New Zealand?
No, cyber insurance is not legally required in NZ. However, more clients, boards, and supply chains are making it a contractual requirement, especially in law, finance, real estate, and technology sectors. Without it, you could be excluded from tenders or lose clients.
2. What doesn’t cyber insurance usually cover in NZ?
Most policies exclude pre-existing breaches, unreported incidents, or attacks caused by gross negligence. Some also exclude state-sponsored attacks or insider threats. NSP helps you understand coverage boundaries so you’re not blindsided later.
3. How much cyber insurance cover should an NZ SME have?
Coverage depends on your industry, data volume, and breach recovery costs. In NZ, SMEs often underestimate these costs even a small breach can exceed $100k. NSP can help you assess your real exposure and set the right coverage level.
4. Can cyber insurance premiums be reduced with better security?
Yes. Insurers reward businesses with strong, verified controls like MDR, MFA, encryption, and incident response plans. Working with NSP to improve your security posture can lower premiums and strengthen your application.
5. How often should I review my cyber insurance policy?
At least annually, or whenever you make significant IT changes (e.g., cloud migration, system upgrades, or expansion into new markets). An outdated application can jeopardise future claims. NSP offers ongoing support to keep your policy current.
Cyber threats are complicated, but your insurance process doesn’t have to be. The cost of getting your application wrong is too high to risk.
Whether you’re a business owner applying for cover or a broker supporting clients, NSP makes sure your application is right the first time, protecting you from the hidden costs of getting it wrong.
Book your free consultation today to secure your cover and your confidence.