The Hidden Cybersecurity Risks Buried in MSP Contracts
When you hire a Managed Service Provider (MSP), you’re not just buying IT support—you’re buying peace of mind. But what if the very contract that’s meant to protect your business puts it at risk?
It’s more common than you think.
Many small and mid-sized businesses (SMBs) assume that working with an MSP means their cybersecurity is fully covered. But in reality, unclear or outdated contracts can shift critical liability back onto you—the client. This is called cyber risk transfer, and it’s a threat that flies under the radar until it’s too late.
In this guide, we’ll show you:
- What is cyber risk transfer?
- Where does it hide in contracts
- What a good MSP does to prevent it
- How Doceo helps you build clarity, confidence, and protection
🔍 What Is Cyber Risk Transfer?
Cybersecurity risks transfer is when an MSP contract limits their responsibility for a breach, outage, or data loss—even if they’re managing your environment.
This isn’t about shady business practices. Often, it’s the result of:
- Generic legal templates
- Poorly defined service scopes
- A mismatch between expectations and documentation
The danger: If your business suffers a cyberattack, the MSP may not be contractually obligated to help you recover—or compensate you.
✅ What Good MSPs Do:
- Use clear, specific language in contracts
- Identify exactly what’s included and what isn’t
⚠️ Why SMBs Are Especially Vulnerable
Cybercriminals increasingly target SMBs because they often lack internal security teams. This is why partnering with an MSP is smart.
But a smart contract is just as important as a smart provider. When contracts don’t clearly define roles and responsibilities, your business can end up:
- Paying for incident response out of pocket
- Facing fines for compliance failures (HIPAA, PCI, etc.)
- Damaging client trust and brand reputation
✅ What Good MSPs Do:
- Educate clients on cybersecurity coverage
- Review contracts regularly as services evolve
- Explain real-world breach scenarios, and how their services respond
🚩 5 Risky Contract Clauses to Watch For (and What Better MSPs Do Instead)
📝 1. “As-Is” or “Best-Effort” Service Language
“Services provided as-is, without guarantee of security or availability.”
This gives MSPs an out if backups fail or malware gets through.
✅ Better MSPs include measurable SLAs (Service Level Agreements) for things like:
- Response times
- Backup success rates
- Patch deployment windows
⚖️ 2. One-Sided Indemnification
“Client agrees to indemnify and hold harmless the MSP…”
This means you might have to cover the MSP’s legal costs—even if the issue was their fault.
✅ Better MSPs use mutual indemnification to ensure fair legal protection for both parties.
💸 3. Minimal Liability Limits
“MSP’s total liability shall not exceed one month of service fees.”
If a breach costs you $80,000, a clause like this might only reimburse $2,000–$5,000.
✅ Better MSPs negotiate reasonable caps based on:
- Compliance risk
- Industry standards
- The scale of services provided
📦 4. Undefined Security Scope
“Includes cybersecurity services.”
Without specifics, you may not be covered for essentials like:
- Email filtering
- Endpoint detection and response (EDR)
- Print infrastructure security
✅ Better MSPs provide a detailed service list and revisit it annually—or as your tech stack evolves.
🖨️ 5. No Mention of Print Devices
Cybercriminals often target printers and multifunction devices (MFPs) because businesses commonly leave them unsecured.
✅ Better MSPs secure all endpoints, including printers:
- Firmware patching
- Role-based access controls
- Pull-printing and encryption
🤝 The MSP You Choose Should Be a Partner, Not Just a Provider
Contracts should build trust, not test it. Great MSPs treat the contract as a reflection of their commitment to your business, not just legal coverage for theirs.
🚀 What Exceptional MSPs Do:
- Collaborate on realistic cybersecurity risk assessments
- Document and explain every layer of protection
- Proactively evolve contracts as threats and technology change
At Doceo, this is our baseline—not an upgrade.
🖨️ Don’t Let Printers Be Your Security Blind Spot
Printers and MFPs are more than paper pushers—they’re networked devices with:
- Cached data
- Admin credentials
- Remote access capability
Yet they’re too often excluded from IT management contracts.
✅ Doceo secures your print environment with:
- Encrypted print job workflows
- Firmware whitelisting and updates
- User access control and logging
📞 Let’s Review Your MSP Agreement—Together
Before you renew or sign your next MSP agreement, let us help you:
- Uncover hidden cybersecurity risks
- Align your expectations and protections
- Make sure nothing important is left out
👉 Request your no-obligation contract review
📞 Or call us at 888-757-6626
Doceo | Proven Technology. Proven People.
