Cyber insurance policies are full of hidden requirements that your clients may not even be aware of—until it’s too late. One of the biggest ticking time bombs? Funds transfer policies. 

If your client has cyber insurance, do they have a documented funds transfer policy that they’ve read and approved? Can you prove that they do? If the answer is no, then you’re exposing your MSP to serious liability risks. Here’s why.

When the Blame Falls on You

A business email compromise (BEC) attack can strike at any time. A hacker gains access to an email account—yours, your client’s, or even one of their vendors. The hacker monitors financial conversations, injects a fraudulent invoice, and tricks someone into wiring money to the wrong place.

The victim calls their cyber insurance provider to recover the lost funds. But the insurer rejects the claim. Why? Because the policy requires a documented funds transfer process—and they don’t have one. Suddenly, the client isn’t just facing financial losses. They’re looking for someone to blame.

And guess who’s in the crosshairs?

MSPs Are Being Sued for These Failures

MSPs that don’t proactively recommend funds transfer policies are at risk of being held responsible for their clients’ financial losses. Courts are increasingly siding with clients who argue, “We hired our IT provider to keep us safe, and they never warned us about this risk.”

If you don’t have evidence that you advised your clients to implement a funds transfer policy, you could find yourself facing lawsuits, lost business, and a destroyed reputation.

Compliance-as-a-Service: Your Best Defense

The solution is simple: compliance-as-a-service. Your MSP should not just offer security tools; you need to provide documented compliance guidance that protects both you and your clients.

Here’s what you should do right now:

  1. Audit every cyber-insured client. Verify whether they have a documented funds transfer policy.
  2. Send a formal recommendation. If they don’t have one, provide a template or refer them to a compliance expert. Document this communication.
  3. Get a signed acknowledgment. Have them sign off that they understand the requirement and either have or decline to implement the policy.
  4. Archive your evidence. If an incident occurs, you need proof that you advised them appropriately.

Don’t Wait Until It’s Too Late

Your clients’ cyber insurance claims depend on these policies. Your business survival could depend on having proof that you warned them. If you haven’t implemented this step yet, now is the time.

Want a compliance process that gives your MSP evidence to defend yourself from lawsuits? Let’s talk.