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Why is it important to share your Cyber Insurance Agreement with your Managed Service Provider? 

It is important to share your cyber liability insurance agreement with your Microsoft 365 Managed Services provider because they may be responsible for some aspects of your network security and data protection. By sharing your agreement, you can ensure that both parties are aware of their roles and responsibilities in the event of a cyber incident, and that there are no gaps or overlaps in coverage. 

Coverage for Cyber Liability Incidents and Losses

A cyber liability insurance policy may cover liabilities for financial loss resulting or arising from acts, errors, or omissions in rendering technology or professional services, such as: 

  • Violation or infringement of any right of privacy, including breach of security and breach of security/privacy laws, rules or regulations globally. 
  • Data theft, damage, unauthorized disclosure, destruction, or corruption, including unauthorized access, use, identity theft, theft of personal identifiable information or confidential corporate information. 
  • Transmission of a computer virus or other type of malicious code 
  • Participation in a denial-of-service attack on third party computer systems 
  • Loss or denial of service 

First-Party and Third-Party Coverage

A cyber liability insurance policy may also include first party and third-party coverage, which protect your data and your liability respectively. First-party coverage may include your costs related to legal counsel, data recovery and restoration, customer notification and credit monitoring, business interruption, cyber extortion and fraud, forensic services, and fees, fines and penalties. Third-party coverage may include payments to consumers affected by the breach, claims and settlement expenses relating to disputes or lawsuits, losses related to defamation and intellectual property infringement, costs for litigation and regulatory inquiries, and other settlements, damages and judgments. 

Mitigating Risks through Collaboration

By sharing your cyber liability insurance agreement with your Microsoft 365 Managed Services provider, you can make sure that they have adequate cyber insurance coverage as well, and that they comply with the terms and conditions of your policy. This can help you avoid potential conflicts or disputes in case of a cyber incident that involves both parties. 

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