If your clients process sensitive data, your MSP is now part of the legal conversation. 

On July 24, 2025, California finalized new rules that require businesses processing high-risk personal information to undergo annual, independent cybersecurity audits. 

This isn’t just for billion-dollar companies. The audit requirement hits any organization that: 

  • Processes personal data for 250,000+ consumers, or 
  • Handles sensitive info (like SSNs, health data, financials) for just 50,000+ individuals 

That includes dentists, accountants, staffing firms, real estate agencies—your clients.
And by extension? You. 

What This Means for You as an MSP 

If your client is subject to these rules and you’re delivering security, you’re already part of their audit scope. 

Auditors will want proof of: 

  • Penetration testing 
  • Password policies and access controls 
  • Encryption protocols 
  • Incident response planning 
  • User training and policy enforcement 

You can either scramble to provide it later—or build it into your stack now. 

How Galactic Helps You Get Paid for Compliance 

Galactic’s third-party pen-testing process already meets the California requirements.
It’s the cornerstone of our Cyber Liability Essentials model—engineered to: 

  • Deliver audit-aligned, third-party security testing
  • Generate the evidence MSPs need to protect themselves and their clients
  • Create a scalable, billable compliance offering with recurring revenue baked in 

This isn’t extra overhead. This is your new differentiator. 

The Opportunity: Sell the Audit Before Someone Else Does 

Insurance brokers, compliance vendors—even CPAs—are selling cybersecurity audits now.
If they beat you to it, they don’t just take the compliance work. 

They question your security stack.
They question your decisions.
They question your entire relationship. 

Don’t let that happen. Lead with the audit. Own the relationship. 

Here’s What to Do Next: 

  1. Identify which clients hit the 250K/50K thresholds 
  2. Offer third-party pen testing and audit prep as a premium service 
  3. Use Galactic to operationalize and scale it fast 

Galactic arms your MSP with the tools and evidence to not only meet California’s new rules—but to use them as a wedge into higher-value conversations and sticky recurring revenue. 

Bottom Line: 

This regulation is a liability landmine—or a sales launchpad. 

Want to offer third-party audit coverage starting today? Let’s talk.