Provable Security Protection Emerges As Critical Countermeasure To Growing MSP Liability Risk

As ransomware attacks continue to escalate in the era of AI, a growing threat is putting managed service providers in the crosshairs: the inability to prove cybersecurity due diligence. At XChange March, Galactic Advisors Chief Security Officer Bruce McCully shared why MSPs need detailed documentation to protect themselves from rising liability risk.

The pain point MSPs know very well—clients insisting their organization is already secure—now carries legal stakes. When clients turn down security recommendations, McCully urged providers to ask a critical follow-up question: “Can you show me? Show me the evidence. Show me the documentation. Show me the analysis that proves you’re actually protected.”

From his experience growing an MSP business, McCully said he noticed clients often readily accept recommendations after suffering a ransomware attack. But this reactive model doesn't protect providers because clients assume MSPs own the security outcome, regardless of their budget objections or the recommendations they declined.

Today, McCully said MSPs often become defendants following a breach. He pointed to the rise of “the cyber personal injury attorney” and that “one in five ransomware events are ending up in a lawsuit.”

Without the right documentation, McCully said cyber insurance isn’t a strong enough buffer against liability. “Cyber insurance isn’t a product. It is a contract,” he said. When clients can’t produce written security plans, training records or signed policies, claims are denied and responsibility shifts back to the MSP.

Galactic Advisors’ solution standardizes evidence collection. McCully said to think of it as “TurboTax for compliance and liability protection.” It enables MSPs to document risk acceptance, security controls and incident response plans quickly—while creating new recurring revenue. McCully closed by asking providers to ask themselves this urgent question: “Could I prove it if I had to?”

Learn more at Galactic Advisors.com.