As cyberattacks continue to increase , many MSPs and small businesses struggle to purchase comprehensive and reasonable cyber insurance to protect themselves and their customers .
The challenge is that getting insurance isn ’ t easy . As players continue to exit the space , experts predict rates could double , even triple , as coverage becomes increasingly limited and harder to get . Plus , the qualification process can be confusing , timeconsuming , and complex , especially for small businesses .
“ As an MSP , you wound up having to answer all of these things and every questionnaire for all of your clients ,” said Adam Schwam , President of Sandwire Technology Group , an MSP based in Long Island , New York . “ There were different insurance companies , all asking the same question five different ways . It just wasn ’ t clear about exactly what you would need to even get coverage .”
To help solve these problems , Kaseya recently announced its Cyber Insurance Fast Track program , a partnership with Cysurance , a next-generation risk mitigation company that insures , warrants , and certifies security solutions . By using Kaseya ’ s IT Complete Security Suite , both MSPs and their customers are now eligible for up to $ 1.5M in coverage without all the complex — and lengthy — questionnaires at up to 20 %– 50 % discounts from traditional coverage .
This program relieves a couple of major hassles that both MSPs and their small-business clients typically have with cyber insurance . First off , the entire process can be tedious and complex , requiring you to fill out an application form that can literally take hours . Plus , adequate coverage can be hard to find and expensive . With this program , it ’ s both easy and affordable .
And the timing couldn ’ t be better . According to Cysurance ’ s President , Kirsten Bay , “ For so many businesses , cybersecurity can be overwhelming . It ’ s easier to simply ignore the problem because they just don ’ t really understand it . This program really enables you to bundle insurance with the security stack , and everything ’ s taken care of in a nice , neat package .”
This ability to offer a stack of security services and have a recommendation to address cyber insurance enables MSPs to essentially “ kill two birds with one stone ” by delivering a better outcome for the customer at a lower cost . And not only does this position the MSP in a beneficial way as someone who can solve a serious concern but the solutions are also extremely “ sticky .” Clients will be reluctant to leave given the breadth of security services offered by the MSP and the preferred rates on insurance .
“ As an MSP , it ’ s our responsibility to protect our clients and make sure they have the most up-to-date security and IT infrastructure ,” said Schwam . “ Cyber insurance is one of those vital services they need to keep them safe . Plus , it makes you look good because you become their trusted adviser . You ’ re making them aware of something they desperately need and you make money because you are providing comprehensive security services .”
Qualifying for the Cyber Insurance Fast Track program can be as simple as answering a few simple questions to receive a personalized quote for both a Certification Warranty and Certified Cyber Insurance .
The Certification Warranty entitles end-customers to $ 500K of reimbursement for successful cyberattacks against the security stack . Think of this almost like a home appliance or auto warranty you purchase to handle unexpected failures and repairs , but instead , it protects against the following :
• Customer Ransomware Attacks
• Business Email Compromise Events
• Compliance Penalties and Regulatory Fines
• Cyber Event Support Costs
• Cyber Legal Liability Events
Participants in the Certification Warranty program are then automatically entitled to a $ 1M flat-rate Certified Cyber Insurance policy . This insurance covers damages resulting from attacks , including the following :
• Business Interruption
• Digital Asset Destruction
• Reputational Income Loss
• Cyber Extortion
• Incident Response Expenses
• Third-Party Expenses
In the event of a breach , the Certification Warranty responds first ; for example , if a ransomware , business email compromise , or compliance event occurs . Once exhausted , Certified Cyber Insurance kicks in to cover additional remediation expenses .
“ The most important factor for this type of solution for me was the reduction of severity ,” said Bay . “ Many people don ’ t know that up to 90 % of small businesses use their primary residence as collateral on their loans . A ransomware attack could literally put them out-of-business and have massive financial impacts .”
In terms of cost , the program is extremely competitive — especially for those companies served by MSPs — ranging from $ 1,700 per year for companies under $ 50M in revenue and $ 2,950 per year for companies between $ 50M and $ 100M in revenue . For MSPs looking for coverage of their own business , a Tech E & O plan is provided , specifically built to address service providers , starting at $ 8,000 per year .
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