An MSP recommends a backup and recovery solution that fails during a system failure. Critical client data cannot be restored, leading to operational disruption and a claim alleging the advice provided was unsuitable.

Claims arising from negligent advice, system design or recommendations in IT services may be covered under Information Technology Liability Insurance where the insured is legally liable.

A threat actor compromises an MSP’s remote management tool and deploys ransomware across multiple client environments. Several clients suffer data loss and business interruption and bring claims alleging inadequate security controls.

Claims arising from ransomware, malware transmission or security failures may be covered under Cyber and Privacy Liability, with related liability claims potentially covered under Technology Liability

A routine software update is deployed across a client’s systems. The update causes unexpected downtime, disrupting operations and revenue. The client alleges the service error caused financial loss and seeks compensation.

Claims arising from system outages or errors in IT services may be covered under Information Technology Professional Indemnity where the insured is legally liable.

An MSP remotely manages a client’s network. A misconfigured security setting allows unauthorised access to sensitive data. The client incurs notification costs and legal action and alleges the MSP failed to adequately secure their systems.

Claims arising from unauthorised access to client data due to security failures may be covered under Cyber and Privacy Liability, including related response and liability costs