Every tech company should prioritize technology security issues and ensure protection with proper measures, policies, processes, and the provision of IT helpdesk support. But, this only guarantees protection for the technology. Cyberattacks have significantly increased, and hackers constantly demand cyber currency and cash. Customer complaints and lawsuits against service providers have increased recently, and therefore, MSPs should also be financially protected to secure long-term success.
Cyber insurance policies have become a necessity between MSPs and customers. The cost of a ransomware payment escalated from $4000 to $178,000 on an average in just a few years, and this amount is very high for small companies to pay. Thus, service providers now add cyber insurance policies to ensure safety, but like other insurance policies, the coverage is only as strong as the specific policy. Since it is a new arena for MSPs, you need to know a lot when considering cyber insurance. Here are some significant points you should know about cybersecurity insurance.
7 Important Points to Know About Cybersecurity Insurance
All Clients Should Have Cybersecurity Insurance
Customers should have cybersecurity insurance without fail and ensure their safety in a world where cyberattacks are rising as a breach, malware, or phishing attack. Hence, customer information is well protected. Incidents of cyberattacks are more likely to occur than a fire breaking out, and your clients may ask questions about your credibility as they are already paying for a host of things. Therefore, you should consider cyber insurance. Clients themselves should fill out the policy forms as MSPs are not liable to take responsibility for filling the forms.
Every MSP Should Carry Cybersecurity Insurance
Cybercriminals often target MSPs as they manage and monitor networks and provide IT help desk services for several businesses. This way, hackers cause more harm than targeting a single business at a time. Studies have shown that about 35% of the MSPs did not have cybersecurity insurance when they became victims of cybercrime, enhancing unwanted business risks. MSPs also need to carry cybersecurity insurance even when customers have got one. It eliminates even the slightest scope of cyberattacks. You cannot pass over the responsibility to clients, or you might have to incur losses of millions.
Risks & Premiums/Riders Are Increasing
The expense of getting a cyber insurance policy depends on examining the possible cyber threats. The threats continue to change, and so do the coverage and the expense of cybersecurity insurance. The insurance companies need to extend their coverage to address increasing risks. Not everyone can pay a considerable sum to buy insurance which is essential for every MSP. You should ensure that your controls are in place to mitigate the risk.
Never Push the Customer to be Both the Doctor & Patient
As a reliable technology advisor, you should assist your client in choosing the correct option and abide by the rules. It can be challenging in quickly developing situations when damage occurs, and Cyber attacks produce complications that can interrupt the normal response to any incident. MSPs aim to fix an issue quickly to improve customer relations and enhance the brand name.
A Huge Scope to Upsell
Insurance carriers require that customers and MSPs satisfy some technical conditions like Multi-Factor Authentication (MFA) to be eligible for a cyber insurance policy. It could allow MSPs to increase communication with clients and boost projects to bring them into compliance. If MSPs do not offer an MFA, they may lag behind their competitors. A customer might be more inclined towards alleviating the risk of cyberattacks rather than continuing with a particular MSP. Therefore, they are more likely to shift in that case. They might have to suffer losses of millions. MSPs should put their smartest personnel at the forefront and have discussions with clients, enhancing sales opportunities.
Cyber Insurance Does Not Mitigate All Risks
Clients should not take cybersecurity lightly, even if MSPs have cyber insurance coverage. The business and reputation of clients might suffer from a significant blow, even if they are covered financially, which is not viable. They should take care to have proper security protocols and policies in place. Cyber insurance is an excellent tool for mitigating the financial risks associated with a cyberattack. However, people should not believe that it is the only solution and that resolving the issue is unnecessary.
Go Through Your Service Agreements
Both MSPs and customers may have cyber insurance, but the service agreement connecting them is where liability issues may arise. Service agreements must constantly be upgraded to incorporate market changes and threat landscapes. It is essential to communicate with probable prospects and customers about cybersecurity and explain the risks, latest threats, and damages. Cyberattacks are viewed as something that happens to others until someone faces it themselves, and people are unaware of the damage that may occur. You can review a cyber insurance policy for current solutions and assist clients in comprehending what they are doing wrong. The necessary steps they should take to ensure maximum safety.
For businesses, the best end-to-end security comprises a combination of prevention through cybersecurity best practices that can help monitor activity and behavior in real-time. Atlas Systems is one of the companies with an in-house team of experienced cybersecurity professionals who can guide you through various cybersecurity policies, measures, and insurances. Our experts have years of experience in the field and have successfully mitigated cyberattack threats. We ensure the proper safety of your business and personal data and save you from incurring huge losses. To know more, contact us today.