More than half of executives now view complexity as their biggest cybersecurity challenge, according to a recent IBM report. And with the average organization juggling 83 security tools across 29 vendors, it’s no surprise. This tangled mess of solutions doesn’t just create operational headaches. It generates liability for both MSPs and their clients.
The hard truth? If you don’t actively manage security, document key decisions, and ensure clients understand their risks, you’re exposing yourself to lawsuits, compliance failures, and financial losses.
But here’s the good news: this complexity can be an opportunity. With the right approach, MSPs can protect their business while giving clients clarity and accountability in cybersecurity.
Cybersecurity Assumptions That Lead to Liability
Most business owners assume their cyber insurance will cover a breach or that their MSP will “handle it.” But these assumptions are dangerous.
Regulators and courts are holding businesses accountable for failing to implement even the most basic cybersecurity measures. Meanwhile, MSPs are often blamed when clients experience cyber incidents—even when those clients ignored security recommendations.
What This Means for Clients:
- Regulatory Fines & Lawsuits: Non-compliance with HIPAA, PCI-DSS, and GDPR can lead to massive penalties and class-action lawsuits.
- Business Disruption Costs: Ransomware attacks can shut down operations for weeks, causing revenue losses and legal battles.
- Cyber Insurance Scrutiny: Insurers demand proof of security measures before approving claims. If your client can’t provide it, their policy won’t pay out.
What This Means for MSPs:
- Breach of Contract Claims: If a client argues that your MSP failed to provide promised protections, they may sue for damages.
- Negligence Lawsuits: Even if security was out of scope, MSPs are often blamed for not “doing more.”
- Reputation Damage: A single public breach can erode trust across your entire customer base.
The Black Box vs. The Secure Framework
MSPs operate in one of two models:
- The Black Box Approach (Your Biggest Liability)
You provide security services behind the scenes. Your team implements projects and supports security tools in the background. Clients assume everything is taken care of.
Then, when something goes wrong, such as when a breach occurs or a tool fails, you take the blame. Even if the client refused to invest in proper security, you’re still the one they point to.
- The Secure Framework (Your Biggest Opportunity)
Instead of operating in the shadows, you make cybersecurity a structured, transparent process. You keep stakeholders in the loop, showing them the progress of their security program.
This isn’t just about technical tools. It’s about training, governance, and demonstrating an ongoing commitment to security. Many MSPs use a Written Information Security Program (WISP) to showcase improvements in security posture. Others opt for CyberWatch to track how their client’s security stance and the threat landscape evolves over time.
Most importantly, you document every conversation with your clients. If they reject a security recommendation, they sign a risk acceptance form, legally transferring the liability to them. This is how MSPs offload risk and protect themselves.
How to Turn Cybersecurity Complexity into a Competitive Advantage
- Document Client Decisions with SignSecureNow
If a client refuses to enable multi-factor authentication (MFA) or update outdated systems, you need a signed record of that decision. SignSecureNow ensures every security choice is captured, timestamped, and legally documented. When a breach happens, liability is clear.
- Conduct Third-Party Risk Assessments
Complexity hides vulnerabilities. Many businesses assume they’re secure because they use multiple tools. But this can be a false sense of security. Third-party risk assessments through Galactic expose gaps before attackers do. MSPs that proactively test security earn trust and credibility with clients.
- Educate Clients with Real-World Examples
Executives feel overwhelmed by cybersecurity. They don’t need more jargon; they need clear, digestible insights on how threats impact businesses like theirs. Using real-world examples, like recent YouTube malware attacks, Galactic can help you make risk tangible and actionable. When clients understand what’s at stake, they’re far more likely to invest in security.
Protect Your MSP. Empower Your Clients.
At Galactic Advisors, we help MSPs cut through cybersecurity complexity with structured, scalable solutions that eliminate liability risks.
With Galactic Advisors, You Can:
- Create clear accountability with decision documentation using SignSecureNow.
- Expose vulnerabilities before hackers do with third-party security assessments.
- Turn cybersecurity into a transparent, profitable service for your clients.
Cybersecurity complexity is growing. Liability is increasing. But with the right approach, cybersecurity doesn’t have to be a risk. It can be your greatest competitive advantage.
Contact Galactic Advisors today to find out how to protect your MSP and make cybersecurity a key part of your business growth strategy.
