Summary
This brief educational video explains first-party cyber liability insurance and its role in protecting managed service providers (MSPs) from the financial impacts of cyber incidents. First-party coverage is designed to protect the insured business itself—not its clients—and includes assistance with incident response costs, ransomware recovery, business continuity expenses, breach notification requirements, and post-incident public relations services. The video emphasizes a critical distinction for MSPs: first-party insurance covers only the MSP's own losses from a cyber event, not damages or costs incurred by their clients. This means MSPs need to understand that their first-party policy provides no protection for client-side incidents, highlighting the importance of appropriate insurance structuring for service provider businesses. The coverage typically extends to investigations, credit monitoring for affected individuals, identity protection services, and activities related to recovering from covered cyber events.
