Think You And Your Clients Don't Need Cyber Liability Insurance? Think Again!

Firewalls. Anti-virus software. Risk assessments. Network monitoring. Multi-factor authentications. As an MSP, you probably have everything you need to protect you and your clients against cyber attacks. But heed the story of the Titanic and keep in mind that no ship is “unsinkable.” Despite all your safeguards, hackers can get the better of any IT security setup and sometimes, internal accidents can occur as well. And when they do, the recovery costs can be crippling. However, cyber liability insurance could be your lifeboat if and when a breach does threaten your “ship.”

Dispelling Misconceptions

Despite all the safeguards cyber insurance offers, many MSPs and small-to-medium businesses (SMBs) are still reluctant to sign up – only 21 percent of SMBs have a standalone cyber risk policy. Instead, they rely on an inadequate umbrella of general liability policies for coverage. MSPs may think cyber insurance diminishes their worth, but getting a policy and helping clients stay in compliance with its terms can add value and increase client trust simultaneously. Knowing you have covered your own risks as an MSP, and your clients’ breach recovery costs as well, instills confidence in your clients and shows you have their best interest in mind.

Some clients may feel that buying their own cyber insurance is overkill since they don’t possess a trove of data that’s enticing to cyber criminals. But breaches aren’t always instigated by outsiders. They can befall organizations of every size. In fact, 47 percent of all malware attacks in 2019 targeted SMBs, who often have smaller IT budgets than their global peers. Tim Burker, a cyber risk director for an insurance brokerage, said that “managing the potential risks and costs of a cyberattack that disrupts operations should be a priority for all organizations, no matter how much sensitive data they store.” And this is exactly where cyber insurance can step in to mitigate risks and costs.