Ever go bungee jumping? How would you feel about a company that invited you to bungee jump off a bridge with them after explaining that 50% of the time they secure your bungee cord and the other 50% of the time they don’t?
As stupid as that sounds, if your clients’ security measures aren’t rock-solid and documented, you may as well be asking them to jump off a bridge without a secured line.
The Problem No One’s Talking About
You’re the lifeline for your clients. They trust you to protect their business, their reputation, and sometimes even their livelihoods. But how many of them assume their cyber insurance will save the day after a breach? And how many of them have no clue they could be denied a claim because they can’t prove their security measures are up to par?
Cyber insurance carriers are tightening their standards faster than you can say “data breach.” In 2025, expect insurers to demand verifiable proof of compliance with stringent security protocols. This isn’t just about ticking a few boxes on a checklist. It’s about having detailed evidence that your clients are proactively managing risk. Without it, even minor gaps can lead to denied claims and catastrophic financial fallout.
Oh, and if your clients get burned, you’re not walking away unscathed. When they suffer, your reputation is on the line.
Why Most Claims Are Denied
It’s not enough to install firewalls and run antivirus software. Insurers want to see continuous risk assessments, documentation of security policies, and evidence of end-user training. Miss one of these, and that payout your client was counting on? Gone.
Take this real-world example: A mid-sized business suffered a ransomware attack. They had cyber insurance and thought they were covered. Turns out, they’d skipped their annual security audit. The insurer denied their claim, citing “failure to meet policy requirements.” The result? The company shelled out six figures to recover, and the MSP? They lost the client—and a good chunk of their reputation.
The 2025 Shift: A Double-Edged Sword
As insurers crack down, the stakes for your MSP are higher than ever. But there’s good news: this challenge is also an opportunity. If you can help your clients navigate these new requirements, you won’t just protect them. You’ll set yourself apart as a trusted advisor.
In 2025, compliance isn’t just a service; it’s a competitive advantage. MSPs that can demonstrate proactive security validation and help clients maintain airtight documentation will own the market. Why? Because businesses want peace of mind, not surprises when disaster strikes.
The MSP Advantage: Turning Liability into Revenue
So, how do you flip the script? Start by positioning your MSP as the ultimate compliance ally. Here’s how:
- Educate Your Clients
Show them the stakes. Explain how the cyber insurance landscape is shifting and why they need more than just a policy. They need proof. - Offer Security Validation Services
Regularly audit their systems, document their compliance, and provide reports they can hand directly to their insurer. - Bundle Compliance into Your MRR Offerings
Make compliance a no-brainer. Build it into your service packages so it’s easy for clients to say yes, and harder for them to leave. - Leverage Real-World Examples
Use cautionary tales to drive urgency. A little healthy fear can go a long way in pushing clients to take action.
The Bottom Line
Your clients depend on you, and you depend on their trust. But trust isn’t built on hope; it’s built on proof. By helping your clients validate their security measures, you’re not just protecting them from denied claims; you’re protecting your MSP from the fallout of their failures.
This doesn’t have to be a question of whether the bungee cord is secure or not. Take the right steps now, and you’ll know for a fact that if a client does start a free fall towards destruction, they’ve got what they need to survive.
