What Is MSP Cyber Insurance?
MSP cyber insurance is a specialized policy designed for managed service providers who manage IT infrastructure, endpoints, and data for their clients. Because MSPs have privileged access to dozens or even hundreds of client environments, a single breach at your MSP can cascade across every client you serve — making you one of the highest-value targets for cybercriminals.
MSP cyber insurance covers both first-party losses (your own breach costs, business interruption, ransomware payments) and third-party liability (when a breach at your MSP causes damage to your clients' systems and data).
How Much Does MSP Cyber Insurance Cost?
MSP cyber insurance typically costs between $1,200 and $5,000 per year for small to mid-sized providers, depending on:
- Number of managed endpoints and client environments
- Annual revenue and contract values
- Security controls in place (MFA, EDR, backup protocols)
- Claims history
| MSP Size | Annual Revenue | Typical Premium | Coverage Limit |
|---|---|---|---|
| Solo / Small | Under $500K | $1,200 – $2,000 | $1M |
| Mid-Size | $500K – $2M | $2,000 – $3,500 | $1M – $2M |
| Larger MSP | $2M – $10M | $3,500 – $5,000+ | $2M – $5M |
→ Compare MSP cyber insurance quotes now
Why MSPs Are the #1 Target for Supply Chain Attacks
The SolarWinds and Kaseya incidents proved what insurers already knew: MSPs are ground zero for supply chain attacks. Hackers target MSPs because compromising one provider gives them access to hundreds of downstream businesses.
- SolarWinds (2020): A single compromised update infected 18,000+ organizations
- Kaseya (2021): REvil ransomware spread through Kaseya VSA to 1,500+ businesses
- Industry data: MSPs experienced a 78% increase in targeted attacks in the past two years
Your clients are increasingly aware of this risk. Many enterprise and mid-market clients now contractually require their MSPs to carry cyber insurance before signing service agreements. Without coverage, you could lose deals — or worse, face uncovered liability.
Top Carriers for MSP Cyber Insurance
Hartford covers IT/Computer Data Processing businesses and offers tailored endorsements for managed service providers. Their CyberChoice product includes breach response, business interruption, and dependent business interruption.
Chubb covers Hardware & Cloud Service Providers with broad cyber liability and technology E&O coverage. Chubb is known for high limits and robust claims handling — ideal for MSPs with enterprise clients.
Hiscox offers affordable cyber coverage for smaller MSPs with streamlined underwriting and fast quotes.
Coalition provides active insurance with continuous monitoring, alerting you to vulnerabilities before they become claims.
