Beltex Security Incident

2024 / 2025 MSPs Tech Errors & Omissions (E&O) Guide This guidance was put together by one of our owners who also still has ownership in an MSP and is in the middle of renewing that MSPs insurance. TL;DR - Cheat Sheet Your agent should present multiple quotes if possible. Sometimes you can only get one quote, in which case the agent should tell you which carriers declined. Tech E&O for MSPs is still one of the most turbulent areas of insurance, so it is not unusual to switch carriers annually. On a recent quote for a $4mm/yr MSP we saw pricing of $7k, 9k, 14k and 22k, all for similar coverage. Would you ever file a claim for $20k? If not, then raise your retention (deductible) to $25k or even $50k. That is the level where you start seeing substantial discounts on pricing, oftentimes 10%+. Make sure your policy covers first party cyber, third party cyber, and services (often written as Tech E&O or Professional liability). If crime / financial coverages (fraud, invoice manipulation, etc.) is important to your MSP, $250k is probably not enough and adds substantial cost to your policy. Instead, get a Tech E&O policy without, and add a standalone crime policy. The crime policy can go above $250k, and covers more such as employee theft. ======================== Full Guide It has been a rough couple of years as an MSP for insuring yourself. Rates have skyrocketed while coverage options have been reduced. Luckily this year we are seeing multiple new carriers willing to insure MSPs, rates are staying flat in many cases, and better coverage is becoming available. What should you watch out for? An MSP needs Tech E&O Coverage, not just cyber. A proper Tech E&O covers three things: First party cyber: direct damage to your MSP Most policies will offer $250k of financial coverages for fraud, invoice manipulation, phishing and similar claims. Third party cyber: damage to other businesses via your MSP Services coverage - the Errors & Omissions part: damage to other businesses...

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