Cyber Insurance for Technology Companies & MSPs
When your clients trust you with their infrastructure, a breach isn't just your problem. it's theirs too. Supply chain attacks, client liability, and service failures require coverage that understands the interconnected nature of tech.
Why Tech Companies and MSPs Face Unique Cyber Risks
Technology companies don't just face their own cyber risks. They inherit their clients' risks and can become the attack vector that compromises hundreds of downstream organizations.
Supply Chain Target
Attackers compromise one MSP or vendor to reach hundreds of downstream targets
Privileged Access
Admin credentials to client systems make you an extremely high-value target
Contractual Liability
MSAs often include indemnification clauses that expose you to client breach costs
Uptime Obligations
SLA penalties and lost revenue when your service goes down, or causes client downtime
Supply Chain Attacks: When Tech Companies Become the Vector
These attacks didn't target the end victims directly. They compromised trusted technology vendors first, then used that access to reach thousands of downstream organizations.
SolarWinds / Sunburst (2020)
Nation-state supply chain attack via IT monitoring software
Russian intelligence operatives compromised SolarWinds' build process, injecting malicious code into the Orion IT monitoring platform. The trojanized update was distributed to approximately 18,000 customers, including the U.S. Treasury, Department of Homeland Security, and major corporations. SolarWinds spent over $40 million on incident response in the first nine months alone.
Kaseya VSA (July 2021)
REvil ransomware attack via MSP management tool
The REvil ransomware gang exploited vulnerabilities in Kaseya's VSA remote monitoring software, a tool used by MSPs to manage client systems. By compromising roughly 60 MSPs, the attackers reached an estimated 1,500 downstream businesses. The attack hit on July 2nd, right before the July 4th holiday weekend. Initial ransom demands totaled $70 million.
MOVEit Transfer (2023)
Cl0p ransomware exploits file transfer vulnerability
The Cl0p ransomware gang exploited a zero-day SQL injection vulnerability in Progress Software's MOVEit Transfer file sharing application. Over 2,700 organizations and 95 million individuals were affected, including major banks, airlines, government agencies, and healthcare providers. The attack demonstrated how a single vulnerable enterprise software component can cascade across industries.
Coverage Built for Technology Companies
Standard cyber policies miss critical tech exposures. Here's what MSPs, SaaS companies, and IT service providers actually need.
Client Liability Coverage
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Third-Party Breach Liability
Claims from clients whose data was exposed due to your security failure
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Technology E&O
Professional liability for errors, omissions, or failures in your services
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Contractual Indemnification
Coverage for liability assumed under MSA indemnification clauses
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Client Notification Costs
When you must notify your clients' customers on their behalf
First-Party Protection
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Business Interruption
Lost revenue and extra expenses when your systems go down
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System Restoration
Costs to rebuild compromised infrastructure and code repositories
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Reputational Harm
PR and crisis communications to rebuild trust with clients
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Dependent Business Interruption
When your cloud provider or critical vendor goes down
For Managed Service Providers
MSPs occupy a unique position in the cyber risk picture. You're trusted with admin credentials to hundreds of client environments. Your RMM tools have direct access to endpoints. Your PSA system contains client data. One breach of your systems can cascade to every client you manage.
The Kaseya attack proved what security researchers had warned about for years: MSPs are prime targets because compromising one MSP means compromising all their clients. Attackers know this. Insurers know this. Your coverage needs to reflect this reality.
What MSPs Need Beyond Standard Cyber Coverage:
- Aggregate limits high enough to cover multiple client claims from a single incident
- Technology E&O covering professional liability for managed services
- Vicarious liability coverage for claims arising from client breaches you enabled
- Incident response that can scale to coordinate across multiple client environments
Technology & MSP Cyber Insurance FAQ
Does cyber insurance cover liability to our MSP clients?
Yes. Technology E&O and cyber liability policies cover claims from clients whose systems or data were compromised due to your services or products. This includes breach notification costs, legal defense, and settlements arising from security failures in systems you manage.
What happens if a supply chain attack hits our software?
Coverage typically includes costs to investigate and remediate compromised code, notify affected customers, defend against lawsuits from downstream users, and cover business interruption while you patch and rebuild trust. The SolarWinds and Kaseya attacks showed how devastating these can be. Proper coverage is essential.
Do we need separate Tech E&O and Cyber policies?
Many carriers now offer combined Tech E&O + Cyber policies that eliminate coverage gaps. Standalone policies can leave gaps. For example, a security failure that causes client downtime might fall between a pure cyber policy (no professional services coverage) and a pure E&O policy (cyber exclusions). Combined coverage is often more comprehensive and cost-effective.
How do insurers view MSPs differently from other tech companies?
Insurers recognize MSPs as higher risk due to privileged access to multiple client environments. Expect detailed underwriting questions about your RMM/PSA security, client access controls, backup procedures, and incident response plans. Strong security practices can significantly reduce premiums, and some insurers specialize in MSP coverage with appropriate pricing.
Protect Your Tech Business and Your Clients
From SaaS startups to established MSPs, we build coverage that reflects the interconnected nature of modern technology. Your clients depend on you. Make sure you can depend on your coverage.