Industry Deep-Dive · 8 min read

Insurance for MSPs and IT Consulting Firms

MSPs aggregate cyber risk across every customer they serve. Underwriting and coverage need to reflect that aggregation.

About the author

Written by Amir.

Coverage stack

Combined Tech E&O + Cyber with explicit MSP wording. Contingent business interruption from a tool/vendor outage. Crime / Funds-Transfer Fraud sublimits. Cyber sublimits sized to your largest customer's contractual requirement.

Underwriting watchlist

Customer concentration + per-customer dependency. RMM tooling — privileged access aggregation. Backup architecture across the customer base. Incident-response playbook and tabletop history.

How do carriers think about MSP customer concentration?

Heavily. A single customer above 25% of revenue or a single customer with cyber-limit requirements above your in-force tower will both move pricing and capacity.

Does a tool outage (e.g., RMM vendor) trigger our policy?

Only if your form includes contingent business interruption with the right dependent-business definition. We confirm this on the policy form before binding.

Frequently asked questions

How do carriers think about MSP customer concentration?

Heavily. A single customer above 25% of revenue or a single customer with cyber-limit requirements above your in-force tower will both move pricing and capacity.

Does a tool outage (e.g., RMM vendor) trigger our policy?

Only if your form includes contingent business interruption with the right dependent-business definition. We confirm this on the policy form before binding.

This material is general educational information, not legal, tax, or insurance advice. Coverage availability, policy terms, and regulatory requirements vary by state, carrier, and applicant.