Galactic Advisors - Will Your Client’s Cyber Insurance Claim Be The Next To Get Denied?

At XChange March, Bruce McCully, chief security officer at Galactic Advisors, issues a sobering warning to managed service providers: cyber insurance is changing, and unprepared clients could put MSPs directly in the legal crosshairs. In his keynote, “Will Your Client’s Cyber Insurance Claim Be the Next to Get Denied?” McCully breaks down the rising cost of breaches, the surge in denied claims and the shifting liability that now rests heavily on MSPs. “Anyone can sue you for anything,” McCully says, urging providers to understand not just their clients’ security posture—but the details of their cyber insurance coverage.

McCully outlines common reasons claims get denied, including failure to maintain minimum standards, poor documentation and misrepresentation on assessments. He encourages MSPs to take a proactive approach by aligning clients with proven security frameworks and using compliance as a value-added service. “At some point, someone will break through your defenses,” McCully says. “When they do, you want a reasonable explanation for the decisions you made.” His message is clear: shifting from reactive to strategic security planning can protect clients—and MSPs themselves—from financial and reputational damage.

For a free cyber liability assessment, visit Galacticscan.com/liability.