Insurance for MSPs

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Overview

Since the 1990s, managed service provider (MSP) companies have served various businesses, helping them monitor and manage their servers and networks. MSPs have broadened their scope of services over the years. Nowadays, MSPs handle much of the time-consuming and repetitive tasks of managing IT infrastructure or user-end systems.

Companies of all sizes rely on MSPs for support as they navigate cybersecurity concerns. However, this reliance puts mounting pressure on MSPs to deliver near-flawless services. That said, roughly 64% of US businesses use some MSP. However, as the opportunities surface, MSPs also face plenty of new vulnerabilities. With cyberattacks increasing steadily — over 155.8 million individuals experienced data exposures in 2020 alone — MSPs face more risks now than ever.

Why is Insurance for MSP Companies Important?

As mentioned, businesses rely more on MSPs to help defend against cyberattacks nowadays. Additionally, MSP companies provide such a variety of services that the vulnerabilities run rampant. Of course, most companies purchase some foundational insurance, such as general liability. However, this exclusive coverage doesn’t cut it when MSPs deal with so many digital interfaces.

The IT environment is growing more complex by the minute, with sophisticated cybercriminals and potential technical issues surrounding remote work. Business digitization isn’t anything new, but it is evolving rapidly in the US, leaving MSPs more vulnerable to risks. Running a successful MSP company means protecting it with a robust risk management plan.

Expansion

Roughly 70% of CEOs are “extremely concerned” with cyberattacks; however, they don’t want the weight of cybersecurity on their shoulders. Trusting an MSP to handle IT issues means CEOs can focus on internal roles and expansion. 

Cyberattacks

Cybersecurity was the #2 top concern in 2020, right behind health and pandemic issues. With cyberattacks on the rise, this mindset will likely continue for years to come. MSPs must traverse the ever-changing IT landscape with cybersecurity in mind. 

IT Concerns

It’s no surprise that the average cost of a data breach is a whopping $4M in the US. With remote work on the rise, IT concerns are mounting and C-level executives depend on MSPs to keep systems and networks running smoothly. 

Remote Work

IT specialists worked 24/7 during the stay-at-home orders in 2020. Many US employees enjoyed the flexible work schedule. As a result, various companies have adopted hybrid work arrangements, making MSPs (i.e., tech support) even more needed now than ever.

Types of MSP Companies that need insurance

  • Complete Managed IT
  • Cloud Service
  • Network Support
  • Cybersecurity
  • Helpdesk Service
  • Field Tech Support
  • IT Consulting
  • Email Security

MSP Insurance Frequently Asked Questions

The cost of insurance for MSP companies will depend on several factors, including the company’s size and the stage of the company in its development process. Other factors include:

  • Exposures: risks being insured.
  • Company practices: views on safety, compliance, and risk management.
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Rachel Jenkins, Customer Success Manager

Meet your specialist

Rachel is one of the premier leading insurance professionals with almost 10 years of experience in the industry. She has been with the Founder Shield team for several years, focusing on client advising and improving policy language for venture-backed companies including financial institutions, Ecommerce, and SaaS companies.

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