Beltex Insurance Making Cyber Insurance Coverage Easier to Get for Experienced MSPs 

 For MSPs, having cyber insurance is imperative to protect themselves financially from inadvertent security breaches, ransomware threats, network disruptions or service errors and omissions that can harm their clients.

But navigating the insurance landscape can be intimidating and difficult as MSPs seek coverage in a crowded insurance marketplace. A wide range of insurance companies offer cyber insurance, also known as professional liability insurance, including Hiscox, Chubb, Beazley, UKON, TechRug, Founder Shield, Insureon and Axcient.

To help make the process easier for established MSPs that have years of business and cybersecurity experience, another company, Beltex Insurance, recently created a new cyber insurance offering that allows MSPs to streamline the application process significantly by using their credentials for GTIA Trustmark Assured IT assurance and for SPECTRA certification. By referencing these security credentials the insurance underwriting processes are shortened because they help establish an MSPs cybersecurity experience and insurability.

“Carriers typically put an entire MSP industry in the same bucket,” Dustin Bolander, founder of Beltex Insurance, told ChannelE2E. “That means you have immature MSPs that do not care about security and do low quality work in the same bucket as mature MSPs, so the questions, rates and coverages for the mature MSPs are not the best.”

Bolander experienced these problems first hand as a previous owner of two MSP businesses, he told ChannelE2E.

To solve these issues, that is when Beltex started looking at the insurance market to see how things could be improved.

“We realized the top 20% of smaller MSPs are actually very elite when it comes to security, so we used a bunch of data we have and designed a policy for that top 20% and then approached several insurance carriers about it,” he said. Beltex partnered with one of them, a $45 billion insurance company, and now offers its new MSProtect policy to specifically improve the application process for MSPs.

“One of the biggest complaints we hear [from MSPs] is around the application process,” he said. Customers told him that “the agent does not understand what we do, or the questions are too vague or not applicable, and there are too many,” he said.

The MSPs with the most cybersecurity experience, those with GTIA Trustmark Assured IT status and SPECTRA certifications, see a large drop in the number of qualifying questions that they have to answer to get rates and coverage for their businesses under this policy, said Bolander.

With a Spectra certification, an MSP can cut out 50% of the applications questions, while having a GTIA Trustmark certification cuts down on the questions even more, he said.

“Basically we are not asking MSPs to fill out more paperwork when they are already certified, we just underwrite off that,” said Bolander. “After the first year we hopefully will be able to offer discounts to Trustmark MSPs, but since this is the first policy ever to underwrite with it, we need a year of data first.”

MSProtect, which includes cybersecurity and errors and omissions protections, launched in the second half of 2025 and is now available in more than 40 states across the United States. Beltex conducted a pilot project for the policy with a small MSP last July.

MSProtect is built for MSPs that bring in $5 million or less in annual revenue, which covers about two-thirds of the industry, he said. “This is historically the most neglected and overpriced group for insurance. We are able to offer $1 million or $2 million insurance policies that cover cyber incidents plus their contracted services to clients.”

The GTIA Trustmark Assured IT assurance and the SPECTRA certification are built specifically for MSPs, which is why they carry so much weight in insurance applications, said Bolander.

A typical MSP cyber insurance policy for good coverage starts around $4,000 annually for most  carriers, according to Bolander. The coverage is needed to protect MSPs when the unthinkable happens, including failed MSP services such as lost backups, or security that does not stop at an attack.

“The real danger for an MSP is what is called subrogation,” which is when an insurance company pays a claim and then seeks reimbursement for that payout from the insured MSP, he said. “For example, a client gets breached. Many of the claims attorneys will ask ‘do you have an MSP handling security?’ then will ask for a copy of that contract. The carrier is looking to recover those claims costs from the MSP afterwards.”

Providing Easier Cyber Insurance for MSPs: Analysts

Shelly Kramer, founder and principal analyst with Kramer&Co., told ChannelE2E that “the need for cyber insurance has never been greater, regardless of organization size. As someone who has filled out voluminous documentation in a quest for cyber insurance, I can definitely see the appeal here.”

Another analyst, Jack E. Gold, president and principal analyst with J.Gold Associates, LLC., agreed.

“No MSP, or any other IT-related company, should not have some form of insurance, and in particular including a cybersecurity component of that insurance,” said Gold. “This hits me as a simpler and marketing driven approach for certified MSPs getting their coverage.”