Kaseya announced this week that it has partnered with Cysurance to make it simpler for managed service providers (MSPs) to make sure their clients can claim damages in the event of a data breach.
Cysurance provides cybersecurity insurance to end customers that MSPs to employ Kaseya Compliance Manager to bind policies of up to $2 million that are provided by Chubb Insurance. MSPs are not reselling that insurance. Instead, MSPs are providing the monitoring capabilities that enable clients to assure Chubb Insurance that all due care was taken to prevent a data breach, says Max Pruger, general manager of compliance at Kaseya.
Otherwise, insurers will not pay out on claims as much as they might if it’s determined the client was in any way negligent, says Pruger.
Cysurance is a licensed Chubb Insurance agent that has partnered with Kaseya to make it possible for MSPs to also ensure that as they help end customers recover from a data breach their remediation costs are covered by Chubb. Without this type of cyber insurance, MSPs would have to wait until a client was able to have their claims paid off by their insurance provider.
In general, most MSPs are just now starting to appreciate the opportunity surrounding various forms of managed compliance and cyber insurance, says Pruger.
“I don’t think MSPs know yet what due care means when it comes to cyber insurance,” says Pruger.
Most MSPs themselves are insured. However, the extent to which they incur costs supporting clients that have experienced a data breach is typically not covered under those policies.
It’s not clear to what degree organizations may be willing to rely more on MSPs if they are provided with a conduit to cyber insurance. However, at a time when it’s often difficult for MSPs to distinguish their capabilities from rivals every little extra bit of intangible extra service that can be provided often makes all the difference.
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