In today's volatile digital landscape, cyber incidents are no longer a theoretical threat but an unfortunate inevitability. Businesses across all sectors are facing an escalating volume and sophistication of attacks, making “if” a cyber incident occurs less relevant than “when.” This stark reality places immense pressure on MSPs. They are already the front line of defense, responsible for ensuring clients have secure systems, updated tools, and robust preventative measures. But, modern businesses requires more than just prevention; they need a trusted partner capable of guiding them through the entire cyber incident lifecycle: Prepare, Defend, and Recover.
Recognizing this critical need, SeedPod Cyber has unveiled its newest initiative, its ERA Program, designed exclusively for MSPs. The program empowers MSPs to transcend their traditional roles, evolving into Elite Risk Advisors – thus the ERA name. This strategic expansion means MSPs won't just help clients avoid attacks; they'll also equip them to recover swiftly and confidently when a breach inevitably occurs, providing the full spectrum of protection businesses now demand.
Addressing MSP Challenges and Building Deeper Relationships with Intelligent Risk Advice
The ERA Program directly addresses several key challenges MSPs face while simultaneously enabling them to forge stronger, more indispensable client relationships. Historically, MSPs might manage security tools and provide incident response, but the full cycle of cyber resilience, especially encompassing the “Prepare” phase related to cyber insurance, has often been fragmented or outside their core offerings. This leaves clients seeking multiple vendors and adds complexity during already stressful times.
SeedPod Cyber’s ERA program equips MSPs with the tools to conduct what it calls a SeedPod Cyber ERA insurability audit. This assessment involves a thorough review of a client’s cyber insurance coverage against two vital criteria:
- Adequacy: Is there enough coverage relative to the cyber risks the client faces? Is the coverage wording broad enough? Are the right endorsements in place to prevent costly coverage gaps?
- Control alignment: Do the client's existing security controls sufficiently satisfy the insurance carrier’s requirements? This is critical to ensure the client benefits from its insurance when an incident happens and avoids denial or restriction of coverage due to deficiencies in the control environment.
The outcome of this audit is a clear report defining whether the firm has the right insurance and the right controls to protect its balance sheet and reputation when a claim occurs.
As SeedPod Cyber CEO Doug Kreitzberg explains, this process provides the MSP with “an opportunity to have an intelligent conversation with the client about risk that focuses on dollars and sense, not FUD (Fear, Uncertainty, and Doubt).”
This focus on insurability also addresses a significant vulnerability for many businesses. While companies are not strictly required to undergo regular risk assessments as part of their cyber policies, they are compelled to answer risk-based questions during the underwriting process.
Kreitzberg warns that these answers form the basis of the insurance contract, and any discrepancy between what's stated and what actually exists in systems can lead to a claim denial or restricted coverage – which happens 44% of the time due to such discrepancies, according to report..
He also paints a stark picture of the average business's preparedness: “If a business is not working with an MSP that is serious about cybersecurity, that business will typically be ill-prepared.”
Common shortcomings include businesses running end-of-life software, having little to no MFA, untested backups, and relying solely on potentially outdated signature-based antivirus solutions. Compounding this, many insurance brokers lack a deep understanding of cyber insurance, leaving businesses ill-equipped to meet carrier requirements.
“You can see why only 10% of the global SMB market currently holds cyber insurance,” says Kreitzberg.
Through its assessments, SeedPod Cyber most often identifies a lack of EDR, insufficient email authentication (DKIM/DMARC), inadequate security awareness training for employees, and the absence of a robust incident response plan as critical shortcomings.
Unlocking New Revenue Opportunities and Deepening Client Loyalty
For MSPs, the ERA Program's ability to facilitate these vital discussions and audits opens up significant new revenue streams. Beyond simply managing IT, MSPs can now offer a highly valued strategic service that directly impacts a client’s financial resilience. By helping clients strengthen their defenses and reduce their cyber insurance costs through better preparation, MSPs add tangible financial value.
The program also provides direct financial incentives: MSPs earn $100 for every insurance quote submitted, instantly boosting revenue with minimal additional workload. An attractive $600 credit is available when partners refer their first four quotes within 90 days. Furthermore, SeedPod Cyber provides exclusive leads directly to ERA partners, eliminating the need for cold outreach, and offers up to $5,000 in marketing development funds to fuel partner growth. This comprehensive support empowers MSPs to increase trust, convert more prospects, and win more deals by showcasing their ability to handle both prevention and recovery with a single, streamlined solution.
The Crucial Difference Cyber Insurance Makes
Kreitzberg articulates the difference cyber insurance makes in the aftermath of an incident. From a financial standpoint, he cites sobering statistics: The average claim for an SMB is $205,000; the average ransom paid is $700,000; and the average lost profits/extra expenses can amount to $487,000.
“There are not a lot of firms that have $200,000 to $1.4 million in free cash flow to pay for an incident,” he warns.
Beyond the dollar coverage, though, carriers bring invaluable expertise and resources to help business in their battle against cyber events.
“They see cyber claims every day and have the know-how and resources to deal with all aspects of an incident, from PR to legal to knowing how to negotiate with the bad guys to even having bitcoin available if it's needed,” Kreitzberg explains. Just as businesses buy insurance for property, liability, and workers' compensation risks, he concludes, “Today, more than ever, all businesses are digital businesses and they need insurance to cover the digital risks they face now and as they evolve in the future.”
By enabling MSPs to facilitate access to this critical protection and the expertise that comes with it, SeedPod Cyber’s ERA Program solidifies MSPs’ role as cybersecurity champions. They are not just preventing risk – they are helping their clients Prepare, Defend, and Recover, offering invaluable peace of mind in an increasingly unpredictable digital world.
Edited by
Erik Linask
