MSPs Get Insurance Boost

By Sara Driscoll  |  Print this article Print

With specific professional liability insurance, MSPs should be able to win more deals, according to the MSPAlliance.

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.

Sara Driscoll began her journalism career at 16 years old on her local newspaper, The Watford Observer. Working part time, she covered a range of beats. Leaving to complete her Journalism Degree at Bournemouth University, UK, Sara then went on to graduate and work for Emap. She began as a reporter on APR, Emap's construction title, being promoted to senior reporter with a year.Sara then joined VNU Business Publications as Deputy News Editor on CRN, the weekly trade title for channel players. She covered industry/business news from vendors, distributors and resellers, product announcements, partner announcements as well as market and trend analysis, research and in depth articles to predict up and coming trends in the sector. She was promoted within a year to News Editor, a year later to Deputy Editor and the following year became Editor. Sara remained editor of CRN for three years, launching the magazine on new platforms including CRN TV and eBooks, as well as several magazine and web site redesigns. She was called on for expert industry comment from various publications including appearing on live BBC news programs. Sara joined Ziff Davis Enterprise as Editor of eWeek Channel Insider. She runs the title in all formats – online up to the minute news, newsletters, emails alerts and events. She also manages the brand of Channel Insider in all formats - events, shows, awards, panel debates and roundtables.Sara can be reached at:sara.driscoll@ziffdavisenterprise.com