Cyber Insurance and MSPs: Why They Go Hand-in-Hand

In today’s cybersecurity landscape, it’s no longer a question of if your business will face a cyberattack, but when. As threats like ransomware, data breaches, and email compromise continue to rise, cyber insurance has become a critical part of modern risk management. Yet many organizations find that qualifying for—and benefiting from—cyber insurance is more complex than simply paying a premium.

That’s where Managed Service Providers (MSPs) play an essential role.

At Davis Powers, we’ve helped countless businesses align their cybersecurity posture with the expectations of insurance providers. From implementing security best practices to ensuring compliance with underwriting questionnaires, our team supports every step of the cyber risk journey.

In this article, we’ll explore why MSPs and cyber insurance are an ideal match, how partnering with an MSP strengthens your insurability, and how proactive support can help you avoid the costs of both cyberattacks and denied claims.

Why Cyber Insurance Is on the Rise

Cyber insurance was once seen as a “nice-to-have” for large enterprises. Today, it’s increasingly viewed as a necessity for small and mid-sized businesses (SMBs)—especially those in regulated industries or those who handle sensitive customer data.

A well-structured cyber insurance policy can cover:

• Incident response costs (legal, forensic, and PR support)
• Data restoration and system recovery
• Business interruption and lost income
• Regulatory fines and legal penalties
• Ransomware payments and extortion negotiations
• Customer notification and credit monitoring

But with the increasing volume and severity of claims, insurance providers are tightening their requirements.

If you’ve applied for cyber insurance recently, you’ve likely encountered long security questionnaires asking about your use of MFA, encryption, backups, employee training, and more. Many providers now require a minimum baseline of cybersecurity controls in place before approving or renewing a policy.

Why MSPs Are Key to Meeting Cyber Insurance Requirements

Navigating these evolving insurance requirements can be a challenge—especially for companies without a dedicated internal IT or security team. That’s where MSPs like Davis Powers come in.

By working with an MSP, you’re not only improving your security posture—you’re also aligning your technology environment with the expectations of insurers and regulators. Here’s how:

1. Implementing Security Controls 

Most insurers now require businesses to use:

• Multi-Factor Authentication (MFA) on email, VPN, and key systems
• Endpoint Detection and Response (EDR) tools on all devices
• Encryption for sensitive data at rest and in transit
• Regular patching and updates
• Secure, verified backups

We help you roll out and manage these tools across your environment—ensuring consistent application and reducing your exposure to common threats.

 2. Establishing Cyber Hygiene 

Insurance underwriters look for a company culture that takes cybersecurity seriously. That means:

• Documented security policies and procedures
• Routine vulnerability scans and risk assessments
• Proper user access controls and password management
• Clear incident response plans

We bring all of these into place in ways that are practical, scalable, and tailored to your business needs.

 3. Training and Testing Your Team 

Human error remains the #1 cause of cyber incidents. Insurers know this—and they want to see that your employees are trained.

At Davis Powers, we provide:

• Security awareness training tailored to your industry
• Simulated phishing campaigns to assess real-world readiness
• Documentation of employee participation and results

These not only reduce your real-world risk, but also demonstrate to insurers that you’re actively mitigating the human factor.

 4. Supporting You Through the Insurance Process 

When it’s time to fill out a cybersecurity questionnaire or answer detailed follow-up questions from an underwriter, most businesses feel overwhelmed.

We assist with:

• Interpreting insurance requirements and mapping them to your systems
• Completing insurer forms with accurate, verifiable data
• Providing evidence of controls, policies, and logs
• Offering remediation plans for any identified gaps

Real-World Consequences of Weak Cybersecurity

Many businesses assume their policy will protect them no matter what—but that’s not always the case.

We’ve seen organizations denied coverage, hit with higher premiums, or left to absorb the full cost of a breach because:

• They enabled MFA after the incident—not before
• Their backups failed due to improper testing
• They couldn’t demonstrate compliance with security protocols
• They lacked an incident response plan or had no logs to investigate what happened

By working with a trusted MSP, you dramatically reduce the chances of this happening to your business.

The Business Case for MSP + Cyber Insurance

At the end of the day, cyber insurance is financial protection. Your MSP is operational protection.

Together, they form a complete cyber risk strategy:

For companies in healthcare, finance, retail, legal, or other regulated industries, having both is not just wise—it’s expected.

Ready to Strengthen Your Security and Coverage?

At Davis Powers, we offer proactive IT and cybersecurity services designed to help businesses meet insurance requirements, prevent incidents, and respond effectively when the unexpected happens.

Whether you're renewing a policy, applying for new coverage, or want to reduce your premiums by improving your posture, we can help.

Let’s talk. Book a consultation with our team to assess where you stand and how to get your business insurance-ready and future-proof.