The Role of Managed Services Providers in Cyber Incident Insurance Claims

by | Jan 17, 2024 | Business Continuity, Managed Services

When your company faces a cyber incident, the ensuing chaos can be overwhelming. Fortunately, a relationship with a managed services provider (MSP) is invaluable, especially when it comes to submitting a cyber insurance claim. Here’s how your MSP can assist during this critical time.

Expert Assessment and Documentation

One of the first steps in the insurance claim process is documenting the incident. Your MSP can assess the situation, determine the scope of the breach, and document all necessary details. This accurate and timely documentation is crucial for an insurance claim.

Evidence Preservation

Insurers require evidence of both the incident and any damages. Your MSP can gather that digital evidence and make sure it is preserved correctly. Maintaining the integrity of logs, access records, and other digital forensics is crucial, as these are the things insurers may examine.

Quantifying the Impact

Your MSP can assist your efforts by quantifying the financial impact of the incident. How long were business operations interrupted? How much data was lost, and how much will it cost to recover it? They can also calculate any other costs. This helps you present a clear, substantiated claim to the insurer.

Liaison with Insurers

Your MSP can act as your knowledgeable intermediary during discussions with your insurance provider. They can translate technical aspects of the cyber incident into language the insurers understand, making sure all communications are clear and targeted.

Mitigation Measures

Insurers often require evidence of risk mitigation. Your MSP can provide records of your company’s proactive measures pre-incident while implementing immediate corrective actions to prevent further damage.

Compliance and Best Practices

Cyber insurance coverage often requires certain levels of security compliance. Your MSP will ensure that the best practices were in place at the time of the incident and can also help demonstrate this compliance to your insurer.

Recovery and Continuity

Finally, your MSP will aid in all recovery efforts, maintaining or restoring your business operations. Evidence of efficient recovery may reduce the size of your claim. It also demonstrates good management to your insurance provider.

While your MSP plays a vital role in managing your IT environment, their expertise is extremely valuable when you navigate the complexities of a cyber insurance claim. This partnership can ultimately lead to a more favorable resolution in the aftermath of a cyber incident.