How MSPs Can Help Clients Meet Cybersecurity Insurance Needs

Did you know your client’s cybersecurity insurance claim can be denied if their SaaS data isn’t backed up? 

As an MSP, you're on the hook when your client loses data in business-critical SaaS applications like Microsoft 365, HubSpot, or QuickBooks Online. They’ll expect you to recover it and minimize their financial loss. However, if that data isn’t backed up independently of the SaaS provider, the data will likely be lost, and the cybersecurity insurance claim could be denied. 

Cybersecurity insurance is becoming a standard part of risk management, with 71% of organizations having coverage. Most MSPs focus on firewalls, MFA, and EDR, but many insurers now require SaaS data protection, too.  

And here’s the kicker: SaaS vendors aren’t responsible for client data — you are. 

“But Isn’t the Cloud Already Backed Up?” 

That’s what most clients think. But here’s the truth: 

Cloud providers protect their infrastructure, not your clients' data inside the app. 

That’s called the shared responsibility model. 

For example: 

• Microsoft ensures uptime of Microsoft 365, but won’t restore emails deleted 90+ days ago 

• QuickBooks Online may archive data, but not in a way that satisfies backup or retention policies for compliance 

Your clients think their cloud data is safe, but it’s not.  

What Happens When An MSP Misses the Backup Requirement? 

Picture this: 

Your client gets hit with ransomware. QuickBooks Online files are encrypted. They try to file a cyber insurance claim. 

The insurer asks: “Do you have a SaaS backup for the QuickBooks online data?” 

You don’t. The claim could be denied, the data is lost, and so is the trust you’ve built with your client. 

Cybersecurity Insurance Compliance Checklist 

MSPs must ensure clients meet these common requirements to qualify for coverage: 

• Strong Security Controls: Insurers want to see robust measures in place to protect sensitive data and systems. 

• Multi-Factor Authentication (MFA): MFA is essential to prevent unauthorized access, even if passwords are compromised. 

• Incident Response Plan: Insurers require a well-documented plan for detecting, responding to, and recovering from cyber incidents. 

• Network Security: Expect questions about the organization’s network’s defenses, including firewalls, intrusion detection, and regular security audits. 

• Encryption: Encryption is vital for protecting data in transit and at rest, and many insurers require it as part of the data security strategy. 

• Security Awareness Training: Regular, relevant cybersecurity training for employees is often mandatory to help strengthen the overall security posture. 

• Access Controls: Strong access controls are necessary to prevent unauthorized access and ensure that only the right people can access sensitive data. 

• Regular Vulnerability Assessments: Insurers may require routine checks to identify and fix system weaknesses that could lead to breaches. 

• Disaster Recovery — Including SaaS Data Recovery: A data backup and recovery strategy for all business-critical data, including the data within SaaS applications, can be crucial for both business continuity and satisfying insurance requirements. 

SaaS backup is now a compliance essential — not just a “nice-to-have.” 

💡 It’s purpose-built for MSPs — reliable, intuitive, and simple to manage. 

Final Takeaways for MSPs 

• Cybersecurity insurance is evolving fast. SaaS backup gaps can void coverage. 

• SaaS data is your responsibility, not the cloud provider’s. 

• Clients might assume you’ve got it covered until something goes wrong. 

• SaaSAssure helps MSPs stay ahead, stay compliant, and stay trusted. 

Don’t Wait for a Breach to Learn This Lesson 

Cyber threats are rising. Insurance rules are tightening. 

Now is the time to protect your clients’ SaaS data, your reputation, and your business. 

Bridge the gap. Stay compliant.   

For more information check out SaaSAssure at https://www.saasassure.com/