Cyber Insurance Program for Defense Contractors

Generic Cyber Policies Create DIB-Specific Gaps

When incidents hits, defense contractors face more than downtime

Most cyber policies were designed for general commercial risk, not for organizations handling Controlled Unclassified Information (CUI) or operating under DFARS 252.204-7012 and NIST SP 800-171.

When an incident occurs, a standard policy may not align with CUI handling rules, 72‑hour DFARS reporting timelines, or the specialist legal support defense contractors actually need.

Cyber Insurance Alignment For Complex Risk

A cyber-first wholesale partner for defense contractors

UKON is a cyber practice operating system for independent agencies.

For over a decade, UKON has specialized in cyber and Tech E&O programs for highly scrutinized, security-conscious organizations.

Human-led, AI-enabled, commission-aligned, we help organizations assess whether their current policy is aligned to legal and forensic demands that can follow a defense-related cyber incident.

What This Program Supports

Coverage Enhancements

DoD-Specific Panels

Incident Response Alignment

Endorsement built to protect the risk specific companies face with DFARS 252.204-7012.

Access to forensic firms and legal counsel experienced in handling CUI and DIB contracts.

Our program's IR protocols are pre-mapped.

Better alignment for incident response, claims, and regulatory scrutiny.

Through this exclusive program, UKON operates as a wholesale partner, so you can pursue a stronger DIB-ready cyber program while keeping your existing agent in place.

We work behind the scenes with your broker to help you access this program, giving you a tighter fit between how you operate and how your coverage responds when pressure is highest.

Program Features

Keep your broker. Upgrade your coverage.

Agent Agnostic

We collaborate with your incumbent agent no need to switch relationships.

Regulatory Defense

Specialized coverage for government audits and regulatory proceedings.

Pre-Vetted IR Teams

Instant access to vendors who understand DFARS/CMMC reporting mandates.

CUI-Focused Claims

Coverage triggers specifically designed for the loss of compromise of CUI.

Protect. Retain. Grow.

PROTECT

Reduce the risk that a DIB incident turns into a coverage surprise by aligning cyber terms with CUI, DFARS, and NIST-driven obligations.

Strengthen customer confidence by showing primes and subs that your contracts, controls, and cyber program are all working in the same direction.

Pursue government contracts and larger defense work with a cyber insurance story that underwriters, assessors, and procurement teams can clearly understand and support.

RETAIN

GROW

Cyber Peace of Mind

Next Steps

The review takes thirty minutes.

The Insurance Review for Defense Contractors maps your current coverage against your actual CMMC compliance posture, False Claims Act exposure, CUI handling liability, and subcontractor flow-down obligations.

If your coverage holds up, we tell you.

If there are gaps, we show you exactly where they sit and what closing them looks like before your C3PAO assessment does it for you.

Frequently Asked Questions

What is the UKON Cyber Insurance Program Built for the DIB?

A DIB-focused cyber insurance program for defense contractors and suppliers that need coverage aligned to CUI, DFARS 252.204‑7012, and NIST SP 800‑171 realities.

What is CMMC and why does it affect my cyber insurance?

CMMC 2.0 is codified under 32 CFR Part 170 and enforced through DFARS 252.204-7021. It is no longer a future requirement. It is a contractual obligation for organizations in the Defense Industrial Base, with enforcement beginning in November 2025 through updated DoD contract clauses. More than 220,000 contractors and subcontractors, including small businesses, are now directly impacted. Standard cyber insurance policies were written before CMMC existed and have not been reviewed against what the framework now requires. Coverage that does not address CUI liability, False Claims Act exposure, and flow-down obligations is structurally misaligned with the compliance environment every defense contractor now operates in..

What is the CMMC Phase 2 deadline?

Phase 2 takes effect November 10, 2026. Starting on that date, contracting officers will require third-party certified Level 2 status by default for contracts involving Controlled Unclassified Information. An independent Cyber AB-authorized C3PAO must formally verify compliance with all 110 NIST SP 800-171 controls.

How is UKON different from a traditional wholesaler?

A traditional cyber insurance wholesaler processes individual submissions and returns quotes. UKON does that inside a larger operating capability that includes book analysis, producer enablement, co-selling, and claims coordination. Agencies can access the wholesale desk for individual accounts and the full practice infrastructure for systematic book-level production.

What is the False Claims Act risk for defense contractors?

When SPRS self-scores and C3PAO assessment results do not match, the Department of Justice has a measurable trigger for investigation. The enforcement precedent is on the books. MORSECORP settled for $4.6 million after a whistleblower filed under qui tam provisions. Raytheon and Nightwing settled for $8.4 million. Standard cyber policies were not written to respond to this exposure. UKON's review specifically addresses whether current coverage addresses False Claims Act liability arising from CMMC attestation discrepancies.

What does UKON's Insurance Review for Defense Contractors include?

A structured thirty-minute session with a UKON specialist covering: current policy review against CMMC compliance requirements, False Claims Act exposure analysis, CUI liability structuring, subcontractor flow-down gap identification, and carrier and market recommendations if coverage restructuring is warranted. The review is complimentary. There is no obligation to proceed.

Is the program commission-aligned?

Yes. No upfront cost and no monthly retainer. UKON earns a commission split on policies placed through the engagement. The model is commission-aligned because the interests need to point in the same direction.