Managed service providers (MSPs) are thought of as a type of insurance, but they are not. Insurance is an entity that is present just in case you need it, but managed service providers are a service which you will use. Admittedly, there are different Service Level Agreements (SLAs) that can be written similarly to an insurance policy, but it is up to you to know what coverage you are paying for. Read below to get a better understanding of how managed service providers work, and what advantages they can bring to your insurance firm.

The SLA

The SLA is the contract between you and the MSP. This contract assures you how the provider will respond to your needs. Without an MSP your IT department will get to it when they get the parts ordered, or you pay extra overtime for them to work on the weekends. MSPs not only take care of the hassles of down time, but they use special analytical monitoring applications to ensure they have a jump start on possible problems before they happen. With an SLA in place, you can guarantee when a problem occurs that it will be fixed immediately. For more information:

The SLA not only makes sure your equipment stays maintained but also ensures efficiency of the entire company. There is a good chance that any problems that occur can be fixed without causing any issues for your employees. That means your business can continue as usual even if there are power outages or server crashes (depending on the circumstances).

The Monthly Premium

Like insurance, the managed service provider requires a monthly payment for its services. This is where the hang up comes from for many insurance companies that have not yet taken advantage of MSP services. Yes, there is a billable monthly fee. A fee you know is going to come out, which makes it easy to plan for. There are no more unexpected surprises. Is it possible you won’t use the service beyond the initial setup period? Very unlikely.

If you need applications installed or upgraded, new hardware requirements, or an increase in computer stations for just one month, then it could all be covered. The managed service provider is not just about maintenance and taking care of things when they break, they are so much more.

Get the Right Managed Service Provider

It is important to find the right MSP for your business. They are taking control of all your data, and you need to make sure you have the peace of mind behind your decision. Find a reputable managed service provider. Find someone who is familiar with the needs of insurance companies. Make sure they are HIPAA compliant, and that they know how to restrict access to your client data. Find out what insurance companies they have sponsored as clients, and what they do that makes them “insurance” friendly.

MSPs are a much better way to go than hiring new IT personnel when it is time to upgrade your system, fix something that is broken, or when deciding on a new infrastructure for your office. Don’t fall into the category of asking “Bob” – the guy in HR to do your computer work.