Let’s talk about insurance. Joseph Brunsman, who has been a guest on the show before, has compiled some changes around Technology Errors and Omissions insurance.
Quoting his Reddit post:
Beazley insurance is “taking a break from quoting new MSP Tech E&O business.” No idea if they’ll be back or not. If they do come back, it’s likely going to be at much higher rates. Will they non-renew existing policies at renewal? I have no idea, and I doubt they do at the moment.
RLI is becoming very strict on who they’ll offer quotes to, and it is becoming uncompetitive due to price in most cases.
Hiscox is no longer quoting new Tech E&O policies for MSPs. It looks like they will likely non-renew all/most of their current MSP clients to get out of the market entirely. If you have one of these, you’ll likely need to look elsewhere at renewal.
CFC: No longer quoting for [the] industry.
At-Bay: No longer quoting for [the] industry.
This is on the ground perspective on what’s happening with insurance. I want to present this as something of meta opinion – Joe is weighing in with his, and I’m commenting, rather than pure statements of fact. That said, here’s someone who studies this space offering on the ground insights.
What happens if you can’t GET E&O insurance… at all? Debate had been about change coming because of imposing requirements, but what if they simply leave the market entirely? That’s a dynamic to consider here, because the risk then lands back entirely on the IT services provider.