A local agency owner recently asked me, “Austin, what are the most common IT and cybersecurity mistakes you see in insurance agencies around Salt Lake?”
Where do I begin...
After working for years with independent insurance advisors and mid-sized firms across the Wasatch Front, the number one mistake I see is treating IT security like a back-office afterthought. Doesn’t matter how many data breaches make national headlines or how often the Utah Insurance Department updates compliance protocols—many agency owners still cross their fingers and hope their consumer-grade setup will be "good enough."
It’s not. Not in 2025. Not in Salt Lake City, where your client base expects digital efficiency and where regulators don’t hand out second chances.
If your CRM or AMS crashes, or worse, your client data is compromised, it’s not just a headache—it’s a threat to everything you’ve built. Lost policies. Lost trust. Lost revenue.
Let’s walk through the most costly mistakes I see insurance advisors making and what to do instead.
Mistake #1: Relying on Free or Consumer-Grade Tech
I get it—the margins in insurance aren’t always generous, and when you’re watching expenses, cutting corners on IT feels justifiable. But if your office is running on a router from Best Buy and your team is using free antivirus software, you’re opening the door to ransomware attacks, compliance violations, and client distrust.
Salt Lake insurance firms deal with deeply sensitive personal and financial data. That means you’re a target.
Instead: Invest in enterprise-level cybersecurity and work with a managed IT services provider (MSP) who understands regulatory compliance specific to Utah's insurance sector. A local IT company like Qual IT, which specializes in managed IT services for insurance advisors in Salt Lake City, will know how to secure your systems while keeping you audit-ready.
Mistake #2: Underestimating Downtime
Here’s what I hear all the time: “It’s fine if we’re down for a few hours… we’ll catch up later.”
But let’s be honest—how much does a single hour of downtime cost your agency? Your agents can’t access your AMS, your service team can’t respond to client requests, your sales pipeline freezes, and policy processing grinds to a halt. Multiply that by a few hours or a full day, and you’re staring at thousands in lost revenue and trust.
Instead: Implement a disaster recovery plan with guaranteed uptime. At Qual IT, we provide 24/7 network support and cloud-based data recovery solutions designed specifically for Salt Lake insurance agencies. Your systems stay online, no matter what.
Mistake #3: Ignoring Cybersecurity Until It’s Too Late
You wouldn’t wait to buy E&O insurance until after a lawsuit hits. So why wait to address cybersecurity until after a breach?
Cybercriminals know that smaller insurance firms often skip advanced protection. They target AMS platforms, intercept client communications, and exploit unpatched systems. One Salt Lake agency I consulted had no endpoint protection on staff laptops. One phishing link later, they lost access to their entire client database.
Instead: Protect your agency with proactive threat monitoring, real-time patch management, and next-gen firewalls. Our cybersecurity services at Qual IT are tailored for independent advisors who need regulatory-grade protection without enterprise-level complexity.
Mistake #4: One-and-Done IT Planning
Here’s the truth most generalist IT providers won’t tell you: a one-time audit or setup isn’t enough. The tech landscape evolves, Salt Lake compliance requirements shift, and your clients’ expectations rise.
Security isn’t a checkbox—it’s a living, breathing part of your business.
Instead: Conduct quarterly IT assessments with a Salt Lake-based MSP who specializes in insurance. At Qual IT, we help our clients stay ahead of changes in both technology and regulation. Our goal is simple: future-proof your agency.
Mistake #5: Choosing a Generic IT Provider
If your IT company doesn’t know the difference between an AMS and a CRM, that’s a red flag.
Insurance is not like retail or real estate. The systems you use (HawkSoft, Applied Epic, Vertafore), the compliance requirements you face (SOC 2, HIPAA, Utah data privacy laws), and the client trust you protect require industry-specific knowledge.
Instead: Partner with a managed IT services firm that speaks your language. At Qual IT, we know Salt Lake insurance advisors because that’s who we serve. Our team is trained in the software and security stack that local agencies rely on every day.
Final Word From Austin McDonald
You’ve worked hard to build your agency. Don’t let outdated systems or preventable IT issues put it all at risk.
This industry is changing fast. Your competitors are modernizing, your clients are expecting more, and regulators are watching. The good news? You don’t have to tackle any of it alone.
At Qual IT, we specialize in helping Salt Lake City insurance advisors like you stay secure, compliant, and ahead of the curve.
Let’s make sure your business isn’t one click away from disaster.
Click here to schedule your free 15-minute Cybersecurity Discovery Call and get real answers for your real concerns.
Stay protected,
Austin McDonald
Cybersecurity & IT Partner to Salt Lake Insurance Advisors
Qual IT
