Liability & risk
Who pays when something goes wrong, and how to keep it from being you.
Blog Indemnification Clauses in MSP Contracts: A Practical Guide
What your MSP indemnification clause must cover, the client-side indemnities to add, and how to align it to your E&O policy. From attorneys who serve MSPs.
Blog Limitation of Liability Clause: What MSPs Need to Know
A client's insurance carrier paid out a seven-figure breach loss, then came after the MSP to recover it. The language in the MSP's own contract decided the dispute. Here is what your limitation of liability clause has to say before that day.
Blog Why Your MSA Shouldn’t Promise a Security Outcome
Clients hire you to help them get secure. But that doesn’t mean you can guarantee they’ll stay secure. If your MSA promises a security outcome rather than a security effort, you’ve taken on a legal obligation that no service provider can realistically meet, leaving you vulnerable to cybersecurity liability. This is one of the most [ ]
Blog Why Your Service Contracts Shouldn’t Act Like Insurance Policies
Your contract should define services, not absorb unlimited risk. You deliver IT, security, or compliance services. You show up. You do the work. You keep systems running. But without clear legal boundaries, a contract can quietly take on a role no service provider intends to play: an insurer. Here’s what that looks like in practice. [ ]
Blog How to Protect Your Business When Clients Ignore Security Advice
You tell your client they need MFA. Or a backup solution. Or endpoint protection. But they say no. What now? As a service provider or technology consultant, you might feel stuck: you gave the right advice, but they refused it. If something goes wrong, will you still be blamed? Why It Matters Security breaches are [ ]
Blog How to Avoid Liability When Ad Accounts Are Compromised or Overspend
You’re running ads for a client. Everything’s approved. But then an accident happens, or worse, the client’s account gets hacked. Suddenly, $100K in ad charges show up, and the client expects you to pay for it. Without the right contract terms, this could become your problem. What Can Go Wrong A former employee still has access [ ]
Blog How SaaS Companies Can Protect Their IP
You built something valuable, your software, your codebase, your platform. But if your contracts don’t clearly spell out who owns what, you might be giving away more than you think. Whether you’re signing customers, partners, freelancers, or early contractors, your agreements need to protect your IP from day one. Where IP Risk Shows Up A [ ]
Blog The Rise of Ransomware: What Every MSP Needs to Include in Client Contracts
Ransomware is more than just a threat. It has evolved into an epidemic. And for Managed Service Providers (MSPs), the stakes are especially high. Cybercriminals often target MSPs as a way to infiltrate multiple clients through a single breach. It makes your business a prime target. Beyond the technical challenges, ransomware also creates legal and [ ]
Blog 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 [ ]
Blog Protecting Your MSP from the Cybercrime Epidemic
Cybercrime is on the rise, and MSP cybersecurity is more critical than ever. Managed Service Providers (MSPs) are increasingly in the crosshairs of ransomware groups, phishing schemes, and other criminal actors. As the frontline defenders of your clients’ IT systems, MSPs face unique challenges in navigating the legal and operational risks associated with cybercrime. It [ ]
Blog Are Your Client Contracts Putting Your MSP at Risk?
For many Managed Service Providers (MSPs), client contracts often feel like a formality, a necessary step to onboard a new client. But the truth is, these agreements are the backbone of your business. When they’re incomplete, outdated, or poorly written, they can expose your MSP to significant risks. From legal disputes to financial losses, bad [ ]
Blog 15 Small Business Growth Strategies for 2025
The new year is looking bright for entrepreneurship: An Intuit Quickbooks survey reported that over 54% of respondents want to start a new business in 2025. Despite the struggles that may lie ahead due to shifting political and economic climates, many entrepreneurs are emerging with new, innovative ideas that are shaping the way businesses operate. Improve the [ ]
Blog The Top 5 Legal Risks Facing MSPs
Did you know that one overlooked detail in your MSP contracts can lead to six-figure lawsuits or regulatory penalties? What you need to understand before talking about the legal risks for managed service providers (MSPs). The legal foundations of their businesses often receive far less attention than their technical solutions. Business Impact: MSPs face unique [ ]
Blog Why “As-a-Service” Models Outperform Traditional Legal Services for MSPs
MSPs face daily challenges with cybersecurity risks and regulatory compliance that go beyond standard legal needs. While traditional legal services add “technology” to their practice areas without truly grasping MSP operations. They can offer some support. But they often fail to match the speed and flexibility MSPs require. That’s why more and more MSPs are [ ]
Blog IT Cybersecurity Liability Concerns
In this article Robert Scott discusses the increasing frequency of data breaches and the associated legal liabilities businesses may face. While cybercriminals are the primary culprits, organizations can also be held responsible, especially if their actions or inactions contribute to the breach’s severity. Read full article at cybersecurity-insiders.com.
Blog Navigating IT Liability in 2025: Strategies for Mitigating Risks
January 18, 2025, IT liability is an issue companies must carefully consider as they enter 2025. The threat landscape is evolving rapidly, with cyberattacks becoming more sophisticated and effective every day. In addition, data privacy laws also place more responsibility on companies that gather and store information related to customer identity and activity. To minimize risk [ ]
Blog Navigating the Legal Maze: A Veteran Litigator’s Guide to Data Breach Lawsuits
Rob Scott’s latest article provides a comprehensive overview of the complexities involved in data breach litigation. It highlights key legal cases, including those involving Target, Equifax, and Capital One, which have set significant precedents in consumer data protection and corporate accountability. The article emphasizes the importance of understanding relevant laws, timely breach disclosures, and the [ ]
Blog CAAS Solution Ensures Comprehensive Legal Protections for MSPs
In today’s ever-evolving cybersecurity landscape, managed service providers (MSPs) are continually navigating a sea of new challenges. Clients depend on MSPs not just for the latest technologies but also for their expertise in implementing sound security measures. However, the responsibility of MSPs should not extend to liability when clients fail to follow these crucial recommendations. [ ]
Blog Insurance Obligations and Limitation of Liability in MSAs
Master Services Agreements (MSAs) serve as the cornerstone of operational clarity between Managed Service Providers (MSPs) and their clients. This comprehensive guide is intended for MSP owners. We’ll clarify the strategic role of insurance and the limitation of liability clauses within our industry leading templates offered through our contracts-as-a-service solution. Together, these components create a [ ]
Blog How MSPs Can Avoid Uncovered Claims
Why MSP’s Should Align the Indemnity Section of the MSA with the Wrongful Act Definition in the Insurance Policy When entering into an IT services contract, it’s important to make sure that the indemnity provision in the contract aligns with the definition of a wrongful act in a professional liability insurance policy. This alignment can [ ]
Blog Top Five Legal Issues Facing IT Managed Services Providers in 2023
IT managed service providers (MSPs) are companies that provide a variety of IT services to their clients, including network management, data backup and recovery, and security. MSPs are often tasked with managing sensitive data, such as personal and financial information, and must navigate a complex legal landscape to avoid potential liability. Legal Issues: Data protection [ ]
Blog How to Choose the Right Lawyer for your MSP Practice
It’s difficult to determine the best lawyers for MSPs (Managed Service Providers) because the best fit depends on a variety of factors, such as the specific legal needs of the MSP, its location, and its budget. However, some things to consider when looking for a lawyer for an MSP include: Expertise: Look for a lawyer [ ]
Blog MSP Insurance Requirements
INSURANCE REQUIREMENTS FOR MANAGED SERVICES PROVIDERS As a managed service provider (MSP), you naturally face significant risk, which makes the insurance component of your managed service agreement (MSA) critical. Too often, MSP contracts are weak, or completely silent, on the matter of insurance, which can leave you unnecessarily vulnerable. If you’re an MSP [ ]
Blog Managed Service Providers: Risk Management and Limitation of Liability
Managed service providers (MSPs) face more risks than ever before and, as a result, require more legal protections. These risks include not only data privacy and cybersecurity issues but also challenges related to technology, compliance, profitability, and vendors, not to mention ever-increasing competition. It’s a lot, but a steadfast risk management and liability-limiting plan [ ]