MSP Insurance

small business owner protected by msp insurance

Comprehensive Insurance for Managed Service Providers (MSP)

Your clients rely on you to help them stay online around the clock. But constant security threats and everyday risks can easily disrupt your operations. MSP insurance can help protect your business, so you can continue to support your clients’ networks.
 
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small business owner protected by msp insurance

What Is MSP Insurance?

MSP insurance refers to a combination off business insurance coverages designed to help protect managed service providers (MSPs) from the common risks they may face every day, such as data breaches, service errors and client claims related to their work. MSPs are businesses that provide IT support, network management and cybersecurity to clients.
 
While “MSP” can mean different things in insurance, in this context it specifically refers to managed service providers — not a stand-alone insurance product.
 

Why Might You Need MSP Insurance?

Managed service providers (MSPs) face unique challenges every day. Whether it’s data breaches, client disputes or issues that can happen with outsourcing services, these risks can come up during normal operations.
 
Because every MSP operates differently, your MSP insurance coverage needs can vary based on factors like:
 
  • The types of IT services you provide, such as network management, cybersecurity or cloud support
  • The size of your business
  • Whether you have employees
  • The types of clients you serve
  • The amount of sensitive data your business handles
The Hartford designs insurance solutions that can help support the unique needs of technology businesses like yours.
small business protected by managed service provider insurance

Who Might Need MSP (Managed Service Provider) Insurance?

MSP insurance may apply to a wide range of IT service professionals who manage, support or secure technology systems for clients. The Hartford’s MSP insurance can help protect many technology businesses, including:
 
  • Managed service providers (MSPs)
  • IT consultants
  • IT providers
  • IT support companies
  • Network administrators
  • Cybersecurity service providers
  • Cloud service providers
  • VoIP and telecom MSPs
small business understands msp insurance meaning

What Type of Insurance Might I Need for an MSP Business?

Many MSPs start with a Business Owner's Policy (BOP), which can help protect you from claims of bodily injury or property damage made against your company.
A BOP combines three types of business insurance coverage into a single policy:
 
General liability helps protect your business from claims that it caused bodily injury or property damage.
 
Commercial property insurance helps protect your owned or rented building, as well as the equipment, tools and supplies you use to run your MSP business, including:
 
  • Computers
  • Network equipment, such as routers, switches and server stacks
  • Hard drives
  • Phones
  • Surge protectors
Business income insurance helps replace your lost income if you can't operate temporarily because of covered property damage caused by fire, theft or wind.
 
It's important to remember that a BOP won't cover every kind of claim. You'll need other types of coverage to create well-rounded protection for your MSP business, including:
 
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Find business insurance solutions designed to support the everyday risks that managed service providers face.
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How Much Does MSP Insurance Cost?

Here are the average costs The Hartford's customers in this industry pay for common insurance coverages:**
 
  • BOP: $1,687 a year, or about $141 a month
  • Stand-alone general liability insurance: $810 a year, or about $68 a month
  • Workers’ compensation insurance: $1,032 a year, or about $86 a month
The cost of MSP insurance varies because every managed service company has unique coverage needs. Insurers also use several factors to determine rates, so what you pay may be different from the average. The best way to find out your insurance cost is to get a quote.
business protected by insurance for managed service providers

Here for You 24/7

We know how busy you are. That's why we've made it easy to get proof of insurance online when you need it.

Covering Your Operations

From sensitive data breaches to client disputes, unforeseen incidents can pose a serious challenge to your business. The right insurance coverage helps protect your operations, giving you the confidence to tackle tech problems head-on and maintain client trust.
Credential misuse, phishing or exploited vulnerabilities are among the most common ways data breaches began in 2025.2
Data Breach Insurance for msp businesses

Data Breach Insurance

“Our business accountant got an invoice from a vendor. She clicked on the link in the email and logged in. She realized afterwards that the email was a scam, and the hackers stole client information that we stored.”
 
Data breach insurance can help you respond to a breach if personally identifiable information (PII) or protected health information (PHI) gets lost or stolen. It can cover breaches from a hacker breaking into your network or an employee accidentally leaving their laptop at a restaurant.
Technology Professional Liability Insurance for msp businesses

Technology Professional Liability Insurance

“Unfortunately, our QA team missed a bug in one of our software updates. Our clients’ systems were miscalculating financial data for hours before we caught it.”
 
Technology professional liability insurance helps protect your business from claims that it made a mistake in the professional services given to clients.

Taking Care of Your Team

With the fast-paced nature of the tech industry, your employees face daily risks on the job. MSP coverage can help support your team and give them peace of mind.
There were approximately 2.5 million workplace injuries in the U.S. in 2024.3
workers' compensation insurance for msp businesses

Workers’ Compensation Insurance

“One of our network administrators cut his hand while setting up a server. He had to go to the nearest urgent care to clean the cut and get stitches.”
 
Workers’ compensation insurance gives your team benefits to help them recover from work-related injuries or illnesses. It can help pay their medical bills and replace lost wages. With The Hartford, your employees also have access to a network of over 1 million providers and 65,000 pharmacies.
Commercial Auto Insurance for msp businesses

Commercial Auto Insurance

“My field tech got into an accident while driving to our client’s office. She was fine, but the other driver sued our business.”
 
Commercial auto insurance can help protect your MSP business on the road if you use company-owned vehicles for work. It can help cover property damage and bodily injury claims from an accident.

Protecting Your Property

From computers and servers to office equipment and furniture, your MSP business relies on various types of company property to be successful. The right coverage can help protect you from unexpected events like damage, theft or accidents, so they don’t derail your progress.
On average, there are 16,500 office and store fires in the U.S. each year.4
commercial property insurance for msp businesses

Commercial Property Insurance

“We had an electrical fire in one of our server rooms and lost a lot of valuable equipment. We also had to deal with the smoke and fire damage to the building.”
 
Commercial property insurance helps protect your business' equipment and supplies from loss or damage caused by events like storms, fires or vandalism.
business income insurance for msp businesses

Business Income Insurance

“A storm rolled through and blew a tree down onto the roof of our business. We couldn't open for weeks while they removed the tree and fixed the damages inside.”
 
Business income insurance helps replace lost income, which you can use to pay for operational expenses like payroll and utilities.

MSP Business Insurance That Works for You

As an insurance company with more than 200 years of experience, The Hartford understands the complexities of your work and the risks that come with it. That’s why we offer comprehensive insurance solutions designed specifically for managed service providers.
 
Find out more about other tech professions we can help protect:
 

Frequently Asked Questions About MSP Insurance

MSP insurance is a collection of business insurance coverages designed to help protect your business from various claims. For example, if you accidentally damage a client’s computer, general liability insurance can help cover the repair costs. You can also get other types of coverage to increase your protection. For instance, as an MSP, cyber insurance can help your business respond to a data breach.
Without MSP insurance, your company would have to pay out of pocket for costly legal claims, medical bills and damages. For many businesses, this could be financially challenging. Also, many states have certain business insurance requirements. For example, if you have employees, most states require workers' comp coverage. If your business isn't compliant, you could face penalties or fines.
You can get MSP insurance by requesting an online quote for business insurance from The Hartford. You can review coverage options tailored to your business’ needs, services, size and risk profile before moving forward.
MSP stands for Managed Service Provider in this context, but it can also refer to Medicare Secondary Payer in other insurance settings.
MSPs may need a combination of different business insurance coverages to fully protect their company from common risks. These coverages might include general liability insurance, professional liability insurance, cyber liability insurance and workers’ compensation insurance. Depending on your business, you may also consider having commercial property insurance or a Business Owner’s Policy (BOP) to cover your physical assets and daily operations.
MSP liability insurance refers to liability coverages that help protect managed service providers from claims related to their work and business operations. This typically includes professional liability insurance, also called errors and omissions insurance, for claims that your business made a mistake in the services you provided to a client. It could also include general liability insurance to help cover claims that your business operations injured someone or damaged their property.
MSP insurance can include cyber insurance to help cover certain costs related to data breaches, ransomware attacks and other cyber incidents. Coverage will depend on your specific policy terms and the cyber risks your MSP faces.
MSP insurance is not always required by law, but some coverages, like workers’ compensation insurance, may be required if your business has employees. In addition, clients or contracts may require your business to carry specific types of insurance.
Many MSP businesses choose to get cyber insurance because they manage client systems, networks and sensitive data that can increase exposure to cyber risks. Cyber insurance may help cover the costs associated with data breaches, cyberattacks or system disruptions.
small business owner getting online quote for msp business insurance

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Last Updated: August 26, 2026
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.
2 Verizon, "2025 Data Breach Investigations Report," viewed May 2026.
 
3 Bureau of Labor Statistics, “Employer-Reported Workplace Injuries and Illnesses, 2023 to 2024,” viewed May 2026.
 
4 U.S. Fire Administration, “Workplace Fire Safety,” viewed May 2026.
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Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. listed in the Legal Notice.
 
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