You’ve probably experienced firsthand how rapid changes in technology have transformed (and are still transforming) your and your clients’ organizations.
However, as an MSP, you know that cyberthreats are skyrocketing in tandem with advancements in technology. Experts estimate that the global cost of cybercrime will approach $10.5 trillion per year by 2025.
If a client’s organization is harmed as a result of a cyberattack, it will have an impact on your organization as well, and you may face serious consequences. That’s why it is imperative that your clients should have cyber liability insurance and also why your MSP should have its own coverage as well.
Cyber Liability Insurance and Its Importance
Cyber liability insurance protects against financial losses caused by cyber events such as data breaches and other internet-related risks.
All managed service providers (MSPs) and small to medium-sized businesses (SMBs) must consider having cyber liability insurance. It should be your top priority if you digitally handle or store sensitive information such as social security numbers, payment card details, bank account numbers or health records.
If you don’t have cyber liability insurance, the countless expenses you could incur after an incident can financially cripple your organization or even cause it to shut down permanently. Having a cyber liability insurance policy could mean the difference between your business collapsing or staying afloat after a security incident.
Contrary to what many MSPs and SMBs believe, cyber liability insurance usually isn’t included under general liability insurance and must be bought separately. If your company only has general liability insurance, it’s time for a rethink. Cyber liability insurance provides much more coverage (including first-party and third-party coverage) and considers a wide range of internet-based risks.
A typical cyber insurance policy will cover the fundamentals needed to recover from a cyberattack such as:
- Privacy and network security
- Errors and omissions
- Media liability
- Business interruption losses
When looking for cyber liability insurance coverage, make sure to check the insurance company’s claim settlement ratio as well as their policies to see what they cover and what they don’t cover in the event of an attack.
It’s Time to Solve the MSP Dilemma
Hackers are always lurking around the corner, ready to break into an MSP network since it will give them access to numerous client systems. That’s why, as an MSP, you are constantly in the crosshairs of cybercriminals.
While having a cyber liability insurance policy can certainly be a lifesaver, MSPs constantly find it difficult to get approved by a cyber liability insurance provider. Therefore, to help you understand what’s going on, we have aired our podcast that discusses the most pressing questions that MSPs face.
In this inaugural episode, Dan Tomaszewski hosts a roundtable discussion with MSPs just like you, to ask Kirsten Bay of Cysurance cyber liability questions we’ve all been asking ourselves and even a few brilliant ones we hadn’t thought of yet.
Other special guests on this episode are:
- Will Bishop, Sr. Director of Channel, Kaseya
- Michael Arnold, Owner/Sr. Cybersecurity Engineer, ITNS Consulting
- Matt Disher, President, Southwest Networks
Here are a few cyber liability insurance pain points we covered during the podcast:
- The critical areas to focus on first when building out a cybersecurity and compliance program in order to have it align well with the cyber liability insurance.
- The manner in which cyber liability insurance handles issues regarding a business’ supply chain.
- The best way to have business discussions with a client when there’s no information on what the provider is looking for.
To listen to Kirsten’s valuable insights on these pain points and other crucial subjects, check out our podcast “What’s Going on With Cyber Liability Insurance?” here.