Managed services providers are now able to enter deals with more confidence, following the launch of an MSP-specific professional liability insurance offering from the MSPAlliance.
Previously MSPs would have to use liability insurance that was designed more for VARs, such as errors and omissions liability insurance, which could be restrictive for MSPs, according to Charles Weaver, president of the MSPAlliance.
“This professional liability insurance will give MSPs coverage for things that are specific to them, such as cyber liability and remote services liability,” he said.
The insurance program is underwritten by Lloyd’s of London and brokered by Hilb Rogal & Hobbs, and it starts at $3,000.
Weaver said Lloyd’s of London has specifically profiled the members of the MSP Alliance to design the insurance around their business models.
“Most insurance policies that exist right now don’t understand MSPs and can be very expensive,” Weaver said.
This, he added, could mean that when MSPs walk into deals they have to have a particularly long SLA to cover the pieces missing from their liability insurance, and this makes users more skittish about signing a potential deal.
“This will allow MSPs to go into deals with just a simple, straightforward SLA, and should improve the amount of deals an MSP can deliver.”
MSPs must be a member of the MSPAlliance to be eligible for the insurance, but Weaver said the cost of becoming a member of the Alliance is $95. Members who have the passed the Managed Services Accreditation Program exam will also get additional benefits, he added.
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