E&O, Cyber Insurance, and the Illusion of Risk Transfer for MSPs

In this episode, we unpack one of the most misunderstood topics in the MSP industry: insurance. From Errors & Omissions to cyber insurance, we break down what these policies actually cover, and more importantly, what they don’t. The conversation challenges the assumption that buying insurance equals risk transfer and explores how liability really plays out across MSPs, clients, and third‑party vendors.

We discuss why cyber insurance typically protects only the insured entity, how E&O applies to negligence and misconfiguration, and why insurance requirements vary dramatically based on client size, maturity, and risk tolerance. The episode also dives into supply‑chain risk, litigation realities, and why MSPs must align insurance decisions with their business model, client profiles, and overall risk strategy, rather than treating insurance as a checkbox.

Ultimately, this episode reinforces that trust is built through risk conversations, not policies, and that MSPs have a critical opportunity to mentor clients on what good risk management actually looks like.