MSP Compliance Services: Making Clients Cyber Insurance Ready

When a cyber incident hits, the financial fallout can be brutal. We’re talking ransoms, regulatory fines, reputational damage, and legal fees that you could do without.

Cyber insurance mitigates those risks, acting as a safety net that helps businesses get back on their feet instead of throwing in the towel. But here’s the catch: obtaining cyber insurance is increasingly difficult for businesses without demonstrable security controls.

As an MSP, you can provide invaluable assistance to clients trying to navigate the cyber insurance landscape, especially if you have the right tools and expert support to back you up. And that's exactly what we'll be diving into in this article.

Key Security Requirements for Cyber Insurance Approval

Constant analysis of breach data and attack vectors tells cyber insurance carriers that a robust security posture is the single most effective way to minimize the likelihood and impact of a cyber incident. Consequently, your security posture directly impacts your ability to obtain coverage and the associated cost.

It’s obvious if you think about it.

An organization with lax security controls is statistically more likely to experience a cyber incident. A breach means costly payouts for the insurer, so these organizations are either outright denied coverage or face significantly inflated premiums. On the other hand, a business with strong security measures demonstrates a commitment to risk mitigation, making them a far less risky proposition and increasing their chances of securing coverage at more favorable rates.

By helping your clients achieve the latter, you can position them for coverage at more favorable rates — and you can achieve that through MSP compliance services.

How Compliance Frameworks Lower Your Cyber Insurance Premiums

Compliance isn't just about ticking boxes for an audit. While the specific mandates of NIST CSF, CMMC, SOC 2, CIS, ISO 27001, and HIPAA may differ, they converge on a fundamental set of cybersecurity best practices. In essence, they’re all designed to protect sensitive data and systems from a wide range of cyber threats.

Consider the common threads woven through these frameworks:

Risk assessments to identify vulnerabilities
Access control policies to limit unauthorized entry
Continuous monitoring to detect and respond to suspicious activity
Employee training to cultivate a culture of security awareness

Uncoincidentally, these components closely mirror the security controls that cyber insurance providers prioritize when evaluating an organization's risk profile.

With MSP compliance services, you're building a security foundation that enhances your clients’ overall protection against cyber threats and, at the same time, addresses the concerns of cyber insurance underwriters. Clients with well-established compliance programs, supported by your ongoing management and documentation, are seen as less likely to experience significant cyber incidents, making them eligible for broader coverage and lower premiums.

MSP Compliance Checklist: 4 Steps to Cyber Insurance Readiness

To assist your clients in navigating the cyber insurance landscape, you can structure compliance services with a focus on insurance readiness. Here’s a step-by-step approach for your MSP:

Step 1: Initial Risk and Gap Assessment

Begin by conducting a thorough risk and gap assessment of your client's current security infrastructure and practices. Identify their assets, potential threats, and existing vulnerabilities. This provides a clear picture of their current risk level and highlights areas needing improvement for both security and insurability.

Step 2: Building a CaaS Package

Based on the findings of the initial risk and gap assessment, design a CaaS package that addresses vulnerabilities while establishing the basic controls often considered prerequisites by cyber insurance carriers. A basic MSP compliance service typically includes Multi-Factor Authentication (MFA), reliable backup solutions, comprehensive security awareness training, antivirus and anti-malware measures, and developing security policies and procedures. These elements form the building blocks for a stronger, auditable security posture that resonates with insurance carriers.

Step 3: Implementing Deeper Compliance Controls

For clients requiring adherence to specific frameworks (or those seeking a more robust security stance), guide them through the implementation of more in-depth compliance controls as mandated by frameworks like NIST CSF or SOC 2. This involves more sophisticated security measures and the creation of comprehensive documentation that provides evidence of a mature security program for potential insurers.

Step 4: Ongoing Security Management and Continuous Compliance

Emphasize the importance of continuous security management and maintaining compliance over time. This includes regular monitoring of security controls, timely patching of vulnerabilities, periodic security audits, and updates to policies and procedures to adapt to the evolving threat landscape. Demonstrating a proactive and ongoing commitment to security is key to maintaining favorable cyber insurance terms.

Compliance Scorecard Features that Streamline Insurance Applications

Compliance Scorecard offers a suite of features designed to simplify the process of applying for cyber insurance:

Cyber Insurance Scorecard: When onboarding a new client, our platform prompts you with security questions covering areas like MFA, backups, antivirus, training, vulnerability management, policies, and assessments. This generates a Cyber Insurance Scorecard, highlighting areas where your CaaS offering can bridge the gap for insurance requirements.
FifthWall Integration: Forget the hassle of multiple insurance questionnaires. Our integration with FifthWall Solutions allows you to input your client’s information once, and receive quotes from over 40 carriers.
Centralized Security Control Management: Compliance Scorecard is a central hub for managing many of the security controls that cyber insurance companies look for. Through our platform, you can manage integrations for vulnerability scanning, patch management, asset management, and identity management.
Expertly Designed Policy Documentation: Access our library of professionally crafted policy templates. These readily available documents aid in achieving compliance and the formal documentation often required by cyber insurance providers.
Simplified Audit Readiness: When the time comes to demonstrate your client's cybersecurity maturity to insurance underwriters, Compliance Scorecard provides a centralized repository for compliance verification and attestations, all tracked, stored, and organized within the platform.

Cyber Insurance Made Easy

A well-implemented compliance program, with its inherent security enhancements, not only reduces your client’s risk profile but also gives them access to better coverage and more affordable premiums. With Compliance Scorecard, you can effortlessly turn your compliance strategies into accessible and affordable cyber insurance for your clients.

Stronger security, better coverage, and increased client satisfaction. It’s time to make the path to protection a strategic win for everyone. Contact Compliance Scorecard to get started.