630 I Almost Got Sued as an MSP (And How I Avoided It)

Uncle Marv and Bradley Gross begin by discussing a recent lawsuit where an MSP was sued by a law firm client for $1 million due to a breach. They note that while the initial news generated a lot of attention, the case has since gone quiet, with no further updates on the court proceedings. Gross suggests that this is likely due to the parties engaging in behind-the-scenes negotiations, as the lack of a formal response from the defendants is unusual. The conversation then shifts to the importance of having well-crafted legal agreements, particularly when it comes to cybersecurity services. Gross emphasizes that oral agreements are simply not worth the risk, as they create ambiguity and make it difficult to determine the true scope of the arrangement. He advises MSPs to stop relying on verbal agreements and instead ensure that all responsibilities and expectations are clearly documented. Marv then shares his own personal experience with a former client who had returned to his services, but without a formal agreement in place. This led to a situation where the client suffered a ransomware attack, and Marv found himself in a difficult position without a clear contractual framework. The lesson learned is that MSPs must be proactive in getting agreements signed before engaging in any work, even with existing clients. Key Takeaways: Oral agreements are risky and can lead to costly legal disputesCybersecurity services should always be covered by a written contractMSPs must be diligent in getting agreements signed before starting work, even with existing clientsLawsuits involving MSPs can generate significant attention, but the resolution may happen quietly behind the scenesLink from the show: It's Florida Man Showtime: https://tinyurl.com/46ts8uscSarah Hester Ross: https://tinyurl.com/427nz3arIT Business Podcast: Fiduciary Duty with Brad: https://www.itbusinesspodcast.com/390Coming Soon: https://mspterms.com/The Technology Bradcast: https://bradleygross.podbean.com/  === Connect with Uncle Marv🌐 Website: https://www.itbusinesspodcast.com/🎙 Host: Marvin Bee🛒 Uncle Marv’s Amazon Store (gear & tools I recommend): https://amzn.to/3EiyKoZ☕ Support the show: https://ko-fi.com/itbusinesspodcastIf you found value in this episode, share it with another MSP, IT provider, or tech entrepreneur. Your support helps keep practical, no-nonsense IT business conversations coming every week.