In today’s interconnected world, cybersecurity transcends traditional workplace boundaries and emerges as a critical cornerstone within managed service provider (MSP) operations. 

With the digitization of business processes, MSPs are not merely service providers; they are the guardians of their clients’ digital lifelines. Should those lifelines be compromised, there can be legal consequences. 

A photo of a mobile phone on a yellow background. The screen shows a lock to represent cybersecurity

At Support Adventure, we’ve delved deeper into this topic in a recent podcast conversation with Joseph Brunswick of  Brunsman Advisory Group, an insurance company specializing in cybersecurity and liability that’s been operating for about 30 years now.

This comprehensive article is a summary of our main takeaways from that conversation (watch the full interview), as well as a guide for MSPs on how to navigate the cybersecurity landscape and enhance their strategy. 

MSP Liability

The realm of digital security places managed service providers (MSPs) squarely in the spotlight of liability issues. With increasing cyber threats, MSPs must delineate their responsibilities with precision to avoid the pitfalls of legal consequences. It’s crucial for MSPs to have clear, detailed contracts that specify the bounds of services and responsibilities in order to ward off potential claims that may arise from security breaches or system failures.

An essential safety net in this regard is cyber liability insurance, which offers financial protection against claims of negligence or failure to protect client data. Such insurance can be the difference between a recoverable incident and a financially crippling one.

An illustration of a camera watching over a computer screen, cybersecurity for managed services

Proper documentation is another cornerstone of liability mitigation. A thorough log of activities, system changes, and client interactions provides a robust defense in legal scenarios, ensuring there’s a historical account of due diligence and protocol adherence.

Educating clients on cybersecurity practices is also a fundamental strategy. MSPs that encourage regular security audits and best practices for their clients reduce the risk of incidents that could lead to liability claims. By advocating for a shared responsibility model, MSPs can help create a more secure ecosystem and establish limits on their own accountability.

In the face of ever-present cyber risks, MSPs must adopt a proactive stance on liability, reinforcing their legal safeguards and fostering a culture of shared security vigilance with their clients.

Crafting a Robust Security Policy

At the heart of any robust cybersecurity strategy for managed service providers is a comprehensive and clearly defined security policy. 

This vital document acts as a roadmap, outlining specific protocols and procedures for a range of situations, from daily operations to emergency responses. 

By setting out explicit guidelines, MSPs ensure that their technicians and staff have a clear understanding of the steps necessary to safeguard both their own systems and those of their clients.

This policy is more than a static set of instructions; it’s an adaptable guide that must keep pace with the ever-changing nature of cyber threats. 

It empowers every member of the MSP team to act confidently and knowledgeably when security is on the line. 

With this in place, MSPs not only reinforce their own cyber defenses but also underscore their commitment to the digital safety of the businesses they serve. 

This structured approach to a security policy is essential for creating a trusted environment where MSPs and their clients can trust one another.

Key Components of an MSP Security Policy:

  • Clearly defined user responsibilities and access controls
  • Regularly updated incident response plans
  • Routine reviews and modifications reflecting the dynamic cyber landscape

A robust security policy not only facilitates regulatory compliance but also establishes a security-centric organizational ethos.

Multi-layered Authentication: Beyond Passwords

In today’s world, where cyber threats are increasingly sophisticated, relying solely on password-protected security is like having a basic latch on a gate — it simply doesn’t provide enough protection. 

Multi-factor authentication (MFA) acts as a much-needed upgrade, adding multiple layers of verification that drastically reduce the chances of unauthorized access.

An illustration of a  something that looks like a computer board or a chip, with a password monitor.

This creates a dynamic and fortified barrier that adapts to the threat environment, offering MSPs and their clients a stronger, more resilient line of defense against cyber intrusions.

MFA Benefits:

  • Diminishes the risk of compromised credentials
  • Complies with stringent industry security mandates

Continuous Authentication:

  • Actively monitors and evaluates user activities
  • Offers an adaptive response to anomalous actions, reinforcing security in real-time

Navigating Compliance and Remote Work Dynamics

With the global shift towards remote work, MSPs must have a keen grasp of laws such as the General Data Protection Regulation (GDPR), and the Health Insurance Portability and Accountability Act (HIPAA). There are also state-specific laws they have to adhere to, such as the California Consumer Privacy Act (CCPA).

But it’s not just about compliance — it’s about truly understanding the spirit of these laws to ensure that data privacy is held to the highest standard.

At the same time, MSPs must provide secure remote access solutions that stand up to the challenges of a dispersed workforce. This means implementing systems that not only keep data safe but also respect and uphold the privacy requirements of multiple jurisdictions. 

An illustration of a laptop on a beach. On it's screen there is a lock in a sphere.

As employees log in from various locations, it’s essential that the security measures in place are robust and adaptable, providing peace of mind for both the MSPs and their clients, regardless of where work is being done.

Remote Work Security Essentials:

  • Deployment of end-to-end encrypted VPNs
  • Endpoint security management
  • Regular security awareness training tailored for remote teams

Documentation: The Keystone of Cyber Defense

Documentation plays a crucial, though often understated, role in the realm of cybersecurity for MSPs. It acts as a meticulous record keeper, maintaining a detailed log of all actions, policies, and security incidents. 

This paper trail is essential, not only for regulatory compliance but also for ensuring the continuity of operations. In the event of a security breach or audit, well-kept documentation can swiftly illustrate an MSP’s adherence to prescribed protocols and its proactive stance in managing risks. 

It’s this level of organized accountability that can often make the difference in quickly resolving issues and maintaining trust with clients.

Effective Documentation Practices:

  • Adoption of advanced documentation management systems
  • Continual review cycles for security documents
  • Unfettered access for authorized individuals, ensuring information is available when most needed

Internal Security Practices

For managed service providers, beefing up internal security is just as critical as the security measures they deploy for their clients. This begins with strict access controls to keep sensitive information out of the wrong hands. 

Wide-angle photo of a minimalistic and modern office space with a focus on security documentation. The desk is clean and uncluttered, with a contemporary lamp casting a soft glow on security policy documents prominently displayed in the center. There are no screens or electronic devices, just the essential paperwork, a notepad, and a pen, highlighting the fundamental role of documentation in cyber defense.

Regular updates and patch management are also vital to protect against vulnerabilities. Moreover, conducting routine security audits can provide insight into the effectiveness of current security practices. 

By mirroring the same level of diligence internally that they recommend externally, MSPs not only reinforce their security framework but also demonstrate a commitment to comprehensive cybersecurity practices. 

This internal vigilance serves as a testament to their dedication to security excellence.

Advantages of Solid Internal Security:

  • Ensures the sanctity of the MSP’s own digital assets
  • Acts as a beacon of best practices for clients
  • Enhances reputation and fortifies trust

Cybersecurity Audits for MSP Client Onboarding

At the start of any partnership with a new client, it’s essential for MSPs to conduct an in-depth cybersecurity audit. 

This process establishes a baseline for any client’s current security strategy and uncovers any weaknesses that might leave them exposed to cyber threats. It’s a proactive step that allows MSPs to tailor their services to the unique needs of each client, ensuring a robust and customized defense strategy that secures their digital assets from the outset.

Initial Audit Focus Areas:

  • A thorough inspection of network infrastructure
  • Evaluation of existing policies and procedures
  • Simulation of breach scenarios to test incident response effectiveness

Such measures serve as a testament to an MSP’s commitment to establishing mutual trust with their clients.

Integrating Cutting-edge Tech with the Legal Field

In order for MSPs to stay ahead in the ceaseless race against cyber threats, it’s critical that they continually refine their technology toolkit with a deep comprehension of the legal landscape and the intricacies of cyber insurance. 

By doing so, MSPs not only bolster their defenses but also ensure they are navigating the evolving cyber terrain with due diligence, keeping both their business and their clients’ data under a shield of up-to-date protection and regulatory compliance.

Legal and Insurance Insight:

  • A deep dive into cyber law to safeguard all stakeholders
  • Leveraging cyber insurance knowledge to sculpt risk management and decision-making

 Technological Integration:

  • Adoption and seamless integration of state-of-the-art cybersecurity tools
  • Ongoing staff training on emergent tech

Building a Culture of Security through Training

The human aspect of cybersecurity is often the most unpredictable, making regular and engaging training programs essential for any MSP. 

By equipping staff and clients with the knowledge to recognize and respond to cyber threats effectively, MSPs transform their teams into proactive participants in their security strategy. 

These dynamic training sessions are not just about imparting knowledge; they are about fostering a vigilant and security-minded culture that acts as a human firewall against potential breaches.

Developing Effective Training Programs:

  • Role-specific cybersecurity training modules
  • Frequent updates to training material, reflecting the current threat landscape
  • Regular testing and feedback mechanisms to gauge training effectiveness

By ingraining security awareness in company culture, MSPs can significantly reduce the risk factor introduced by human error.

Strengthening Client Defenses

MSPs are in a unique position to advocate for and enforce cybersecurity best practices among their clientele. 

By integrating requirements like routine data backups and the implementation of MFA into service agreements, MSPs can create a contractual framework that upholds stringent security standards. 

Beyond these stipulations, MSPs should also embark on comprehensive client education initiatives. By doing so, they demystify cybersecurity, turning clients into informed partners who are both aware of risks and engaged in protective measures. 

Educating clients about the significance of cybersecurity, the potential risks of non-compliance, and the shared responsibility in maintaining a secure digital landscape can significantly strengthen the overall security infrastructure. 

This approach not only secures the clients’ digital assets but also fortifies the MSP’s reputation as a guardian of cyber well-being.

Client-Centric Security Strategies:

  • Formalizing security protocols within service agreements
  • Offering educational resources and training to clients
  • Encouraging the adoption of advanced security practices

Conforming to Industry Standards

For MSPs, maintaining a status quo in cybersecurity strategy is not an option, for the digital landscape is far too dynamic.

It’s essential for MSPs to engage in a continuous process of calibrating and refining their services. By keeping abreast of and aligning with industry best practices, MSPs can ensure that their cybersecurity offerings go beyond mere adequacy to set the benchmark for excellence. 

In practice, this means investing in advanced threat detection systems, adopting proactive incident response plans, and integrating cutting-edge security protocols. 

When MSPs commit to this ongoing process of enhancement and adaptation, they not only protect their clients with cutting-edge measures but also position themselves as exemplary leaders in the realm of digital security.

Adherence to Best Practices:

  • Implementation of recognized frameworks like NIST and ISO/IEC 27001
  • Regular benchmarking against industry standards
  • Seeking certifications that reinforce commitment to security

Tailoring Cyber Security Offerings

Not all businesses have identical security needs. MSPs can distinguish themselves by customizing security packages that address the specific challenges of different industries and sizes of businesses.

Custom Security Solutions:

  • Thorough needs assessment for each client
  • Designing security services that cater to niche requirements
  • Flexible security solutions that grow with the client’s business

Set Yourself Up for Future Success!

If you are seeking further consultation on the subject of cybersecurity and liability, Joseph and Brunsman Advisory Group are happy to help! Licensed in numerous states, he offers helpful content in the form of Youtube videos, as well as having one-on-one conversations to get to know you and identify your specific needs. Feel free to email him at [email protected] if you’re ready to improve your security!

If you’re an MSP looking for premium outsourced MSP staffing services we at Support Adventure got your back! Reach out to us to become a client.

Kristina @ Support Adventure

Hi there! I'm Kristina Antic, the voice behind the articles you've been enjoying on the Support Adventure blog.Welcome to the crossroads of travel, transformative career advice, and all things MSP!Since joining the team in 2020, I've been weaving my experiences from traveling across Europe and Asia into stories that resonate with tech enthusiasts and wanderlust-filled souls alike.From the world of translating and IT customer service to teaching, I’ve worn many hats, all of which I now bring together to help you navigate the exciting remote landscape.Whether you’re looking to kickstart your career in tech, dreaming of digital nomad life, or seeking the best MSP practices and staff, I’m here to share what I’ve learned in a way that feels like we’re just chatting over coffee.See you on the blog!


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