Quick Answer: Cyber Insurance Claims for IT Consultants

The most common claims are ransomware incidents (35%), client data breaches via compromised remote access (25%), and business email compromise (18%). Payouts range from $15,000 for phishing to $350,000+ for supply-chain ransomware.

Best carriers:

Hartford: Broad tech coverage, E&O + cyber bundles from $95/mo
Chubb: Highest limits with technology services endorsements
Cowbell: Purpose-built for tech with continuous risk monitoring
Coalition: Active insurance with free security tools

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Elevated Cyber Risk for IT Consultants
Top 7 Claims
Covered vs. Excluded
Average Claim Payouts
Claims Process
Choosing Coverage
Carrier Comparison
FAQ

Why IT Consultants Face Elevated Cyber Risk

IT consultants and MSPs have privileged access to clients' systems, making you both a prime target and liability source. Supply-chain attacks through IT providers increased 68% year-over-year in 2025.

Direct risk: RMM tools targeted, PSA stores credentials, email used for social engineering.
Vicarious risk: Clients blame your configuration, your recommended products have vulnerabilities.

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Top 7 Cyber Insurance Claims

1. Ransomware via RMM Tool Compromise (35%)

Attackers compromise ConnectWise, Datto, or Kaseya and deploy ransomware to 10–50 client environments. Typical claim: $75,000–$350,000.

2. Client Data Breach via Remote Access (25%)

Stolen credentials access client networks through your VPN. Typical claim: $50,000–$200,000.

3. Business Email Compromise (18%)

Attacker sends fraudulent invoices from your email. Typical claim: $15,000–$100,000. Watch for sub-limits (often $25K–$50K cap).

4. E&O Claims from Security Failures (10%)

Client sues because your implementation failed. Typical claim: $25,000–$150,000. Falls under Tech E&O.

5. Accidental Data Exposure (5%)

Misconfigured cloud storage exposes client data. Typical claim: $10,000–$75,000.

6. Insider Threat (4%)

Disgruntled employee copies data or installs backdoors. Typical claim: $20,000–$100,000.

7. Regulatory Investigation (3%)

State AG investigates your data handling. Typical claim: $15,000–$80,000.

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What's Covered vs. Excluded

Scenario	Covered?	Notes
Ransomware on your systems	Yes	Including ransom payment
Ransomware to clients via your tools	Usually	Check supply chain exclusion
Client data breach via your access	Yes	First and third-party
Wire fraud / BEC	Yes (sub-limits)	Often $25K–$100K cap
Client sues over security failure	E&O, not cyber	Need combined policy
Known unpatched vulnerability	Varies	Some carriers exclude
War / nation-state	Usually excluded	Act of war exclusion

Most dangerous gap: The line between cyber and E&O. Get a combined cyber + E&O policy.

Average Claim Payouts

Incident Type	Average	Median	Max
RMM ransomware (multi-client)	$185,000	$125,000	$2.5M+
Single-client breach	$95,000	$65,000	$800K
BEC / wire fraud	$42,000	$28,000	$500K
E&O security failure	$78,000	$50,000	$1.2M

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How Claims Work

Discovery (Day 0): Call carrier's 24/7 breach response hotline.
Triage (Days 0–2): Breach coach and forensics assigned.
Containment (Days 1–7): Isolate systems, preserve evidence.
Notification (Days 7–30): State-by-state compliance managed.
Recovery (Days 7–60): Data restoration, BI coverage active.
Resolution (Days 30–180): Legal defense and settlement.

Key tip: Most policies have a 72-hour reporting window.

Choosing Coverage

Solo (1–3 employees): $500K cyber + $500K E&O, $1,200–$2,500/year.
Small MSP (4–15): $1M cyber + $1M E&O, $3,000–$8,000/year.
Mid-Size MSP (15–50): $2M–$5M cyber + $2M E&O, $8,000–$20,000/year.

Carrier Comparison

Carrier	Bundle	Starting Price	Best For
Hartford	Cyber + E&O	~$95/mo	Small MSPs
Chubb	Cyber + E&O	~$150/mo	Enterprise-facing MSPs
Cowbell	Cyber + E&O	~$80/mo	Tech-savvy MSPs
Coalition	Cyber + E&O	~$100/mo	Risk prevention
Hiscox	Cyber + E&O	~$70/mo	Solo consultants

→ Compare quotes from all 5 carriers in 60 seconds

FAQ

Need cyber if I have Tech E&O? Yes. E&O covers negligence. Cyber covers incident response costs E&O doesn't touch.

Will insurance cover clients' losses? Third-party coverage defends you and pays settlements. Clients need their own policies.

Cost for 10-person MSP? $3,000–$6,000/year for $1M. SOC 2 gets 10–15% discount.

Ready to protect your IT business? Compare cyber + E&O quotes from Hartford, Chubb, Cowbell, and more — get your free quote in 60 seconds.

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