Are Your Clients Ignoring Security Advice? Here’s How to Protect Your MSP
As a Managed Service Provider (MSP), you play a crucial role in helping clients secure their systems and protect their data. But what happens when clients ignore your recommendations?
As MSP Cybersecurity threats become more sophisticated, the gap between security recommendations and client implementation continues to widen.
Whether it’s skipping critical updates, rejecting advanced security tools, or failing to follow best practices, ignored advice can lead to serious vulnerabilities, not just for your clients but for your MSP as well.
In this blog, we’ll explore why ignored security recommendations are a risk for MSPs and how strong contractual protections, including limitations of MSP liability, can shield your business.
The Risks of Ignored Security Advice
When clients fail to act on your guidance, the consequences can ripple far beyond the initial incident:
1. Liability for Cybersecurity Breaches
A breach occurring after a client ignores your advice can lead to disputes over your role and responsibility. Without clear contract terms, clients may claim you were negligent.
2. Reputational Damage
Even if you’re not at fault, the perception of a failed partnership can tarnish your reputation and impact future business opportunities.
3. Regulatory Scrutiny
If sensitive data is compromised, regulatory bodies may investigate whether your MSP did enough to secure the client’s environment, particularly under laws like GDPR, HIPAA, or CCPA.
Read more about MSP Vendor Liability & MSP Vendor Management Risks.
How Contracts Can Protect Your MSP
Strong contracts are your first line of defense against the risks posed by ignored security advice.
That’s why today’s MSP agreements must evolve beyond simple service descriptions to include sophisticated client security risk management provisions that protect both parties.
Also, the enforceability of these protections often hinges on how clearly and specifically they address known MSP Client Security risks.
Here’s what to include:
1. Include Limitations of Liability
Limit the scope of your liability for damages resulting from cyber incidents, particularly those caused by client negligence.
Example Clause:
“The MSP’s total liability for any damages, losses, or interruptions shall not exceed the total fees paid by the client for services during the preceding 12 months. The MSP shall not be liable for damages resulting from the client’s failure to implement recommended security measures.”
2. Exclude Liability for Ignored Recommendations
Make it clear that your MSP is not responsible for issues caused by the client’s decision not to follow your guidance.
Example Clause:
“The MSP shall not be liable for any damages, interruptions, or losses arising from the client’s failure to implement the MSP’s recommended security measures, including but not limited to system updates, software configurations, and cybersecurity tools.”
3. Define Client Responsibilities for Cybersecurity
Your contracts should clearly outline the client’s role in maintaining a secure IT environment, including MSP client security compliance with your recommendations.
Example Clause:
“The client shall assume responsibility for implementing all cybersecurity measures recommended by the MSP, including regular software updates, password management protocols, and user education programs.”
4. Require Cyber Insurance for Clients
Encourage your clients to carry cyber liability insurance to mitigate financial risks associated with breaches, shifting some of the burden away from your MSP.
Example Clause:
“The client agrees to maintain a cyber liability insurance policy sufficient to cover damages resulting from cyber incidents, including breaches arising from failure to implement the MSP’s recommendations.”
5. Use Indemnification Clauses
Protect your MSP by requiring clients to indemnify you for damages resulting from their own negligence or refusal to follow your guidance.
Example Clause:
“The client agrees to indemnify and hold harmless the MSP from any claims, damages, or liabilities resulting from the client’s actions or inactions, including failure to implement the MSP’s security recommendations.”
Read more about MSP Contract Failure.
Steps Beyond Contract
While contracts are critical, operational measures can further reduce the risk caused by client security neglect for MSPs:
- Regular Security Reviews: Periodically assess client environments and highlight unaddressed vulnerabilities. This becomes particularly important when insurance carriers review claims related to security incidents.
- Client Education: Offer accessible, non-technical explanations of the MSP legal risks associated with neglecting security recommendations. This helps bridge the gap between technical requirements and business understanding.
- Proactive Communication: Document all security guidance and communicate the potential consequences of non-compliance. This creates a clear record of communication without putting all the power in the client’s hands to delay or avoid implementation.
The Monjur Advantage
At Monjur, we help MSPs protect their businesses with contracts tailored to address real-world risks like ignored security advice. Our Contracts-as-a-Service (CaaS) solution ensures your agreements are legally sound, up-to-date, and designed to mitigate risks effectively.
Unlike traditional legal services that simply email you a static Word document, we provide smart hyperlinks that integrate directly with your sales tools and keep your agreements continuously updated as regulations and risks evolve.
Don’t let client negligence jeopardize your business. Contact us today to learn how Monjur can help safeguard your MSP with robust, risk-balanced agreements.
