UKON Expands Cyber Practice Leadership with Defense-Focused Insurance Program Addressing the Cyber Protection Gap

DENVER, CO — April 28, 2026 — UKON today announced the launch of a dedicated cyber insurance program for defense contractors, Defense Industrial Base (DIB) subcontractors, and the managed service providers that support them. Built to address the growing insurance and liability gaps tied to CMMC 2.0 and Controlled Unclassified Information (CUI), the program extends UKON’s Cyber Practice Leadership model into the defense ecosystem.

Since its founding in 2016, UKON has enabled insurance agencies and MSPs to navigate the complexities of the cyber market and better protect their end clients. With more than 1,500 businesses supported, UKON has developed deep institutional expertise across cyber insurance, risk alignment, and coverage design. That experience now powers its expansion into the Defense Industrial Base, where coverage gaps and compliance exposure are rapidly converging.

"Defense contractors are being held to a completely different standard, but the insurance market hasn’t caught up," said Rick Rosenberry, who leads UKON’s defense contractor practice. "We’re seeing organizations take on CMMC-related responsibilities — handling CUI, supporting certification efforts, managing regulated environments — without realizing their policies were never designed for that level of exposure. This program brings the right structure, coverage, and response capabilities into alignment with how these companies actually operate."

What the Standard Market Is Missing

Most cyber and Tech E&O policies in the market today were not designed for organizations operating in regulated environments or supporting government contracts. As a result, many defense contractors and MSPs are carrying policies that create a false sense of protection.

Core services tied to handling sensitive data, supporting client security programs, and managing cyber risk often fall into gray areas or are excluded entirely. At the same time, incident response resources bundled into standard policies are typically built for commercial events — not situations involving regulatory scrutiny, contractual obligations, or multi-party liability across a supply chain.

This disconnect leaves organizations exposed not just to cyber events, but to downstream financial and legal consequences tied to how security responsibilities are represented and delivered.

That exposure is no longer theoretical. Enforcement activity tied to misrepresentation of cybersecurity practices and contractual obligations is increasing, creating real financial consequences for organizations that believed they were adequately covered.

Program Capabilities:

• Coverage structured for organizations delivering and supporting cybersecurity services, including protection for handling sensitive data and client-facing security responsibilities

• Incident response built for complex environments, including coordinated legal, forensic, and communications support aligned to regulated and contract-driven scenarios

• Pre-claim alignment through a zero-cost retainer, ensuring response teams are engaged and prepared before an event occurs

• Coverage clarity around emerging risks, including the use of AI within service delivery environments

• Supply chain visibility, helping organizations identify and address risk and coverage misalignment across vendors and partners

The DIB Insurance Gap

A significant portion of the Defense Industrial Base remains underprepared for the financial and operational impact of a cyber event. While requirements and expectations have increased, insurance coverage has not evolved at the same pace.

At the same time, thousands of companies are reevaluating their ability to continue operating in the defense ecosystem as costs, risk, and accountability increase. Many are making these decisions without fully understanding where their insurance programs fail to respond.

"Most defense contractors and the MSPs supporting them are carrying cyber and Tech E&O policies that were written for a different operating reality," said Matthew Hightower, CEO of UKON. "When something goes wrong, the gap isn’t just technical — it’s contractual, financial, and operational. This program is designed to align coverage with how these organizations actually deliver and support cybersecurity today."

Insurance Review for Defense Contractors

The program includes a complimentary Insurance Review for Defense Contractors — a structured 30-minute session designed to identify gaps between current coverage and real-world exposure, including contractual risk, data handling responsibilities, and third-party dependencies.

The model is commission-aligned, with no upfront cost or ongoing retainer, allowing organizations to engage without friction.