It is common that small and mid-size businesses (SMBs) do not have resources dedicated to cybersecurity. Only 57% of SMBs have in-house cybersecurity experts. Instead, many choose to outsource cybersecurity to their MSP (Managed Service Provider) or to an MSSP (Managed Security Service Providers). MSPs deliver IT services to their customers and need to ensure the security and integrity of the data they manage on their behalf. This is even more of an issue for MSSPs who strictly focus on security services. More than one in three SMB organizations are engaging MSSPs to support their organizations’ IT security functions. In the small business market, many MSPs also include security services as part of their offering.
MS(S)Ps should recommend cyber insurance as part of their services for the following three reasons:
For businesses to be cyber resilient, both cybersecurity and cyber insurance are needed
The deployment of security controls by MS(S)Ps will prevent, detect and mitigate cyberattacks. But no business - large or small - is immune to cyberattacks. Cyber insurance mitigates losses and the financial impact of a cyber incident and plays a key role in helping businesses return to normal operations after a breach.
In the event of an incident, businesses will turn to their MS(S)P for immediate help. Cyber insurance can help bring specialized resources to bear and cover the associated expenses
Whether the incident is related to the service provided or not, the MS(S)P is most likely to be involved in post-incident forensic activities. Cyber insurance can cover post-incident expenses such as the costs for forensic experts, ransom negotiation specialists, and other expert resources.
Overall, it will be beneficial for MS(S)P to ensure that, in the event of a breach, their customers recover quickly and that these expenses are covered. Cyber insurance will directly contribute to customer satisfaction and retention.
MS(S)Ps, insurance agencies, and insurance providers all have the cyber protection of their joint customers as a priority. There is an opportunity to partner and add value to policyholders with the goal to proactively help prevent devastating cyber incidents.
IT services, security, and insurance providers can collaborate to deliver the best-integrated protection to the business (the policyholders) by sharing risk assessment and insights, defining cyber insurance coverages that are aligned with identified exposures, as well as shared security training resources.
Cowbell Cyber delivers immediate and ongoing visibility into evolving cyber risks through our Cowbell Factors. Cowbell Factors can highlight security strengths and weaknesses that an MS(S)P can help address, while the insurance agency delivers coverages tailored to the unique needs and risk appetite of the business using Cowbell’s platform and Cowbell's standalone, admitted, cyber insurance offerings.