Data breaches are affecting companies every two seconds and estimated to cost businesses $265 billion by 2031, there is no wonder that distributors are providing buyers with a new kind of warranty. These warranties are designed to decrease the financial risk posed by cyberattacks by shifting the responsibility from the MSP to the vendor. They are often used to complement cybersecurity insurance and fill in the gaps where traditional policies may fail.
The inclusion of a data security data safety warranty guarantee can help protect its sensitive data from online threats, however not all warranties are alike. Some warranties have strict conditions that can force a business to pay a significant amount for retrieving data if there is a breach.
The manufacturer’s guidelines on how to use a device could prevent a warranty from covering the cost of fixing or replacing the device in the case of an unexpected issue. A “as-is” warranty disclaimer allows the vendor to abstain from liability in the event that a purchaser discovers a defect that is not apparent prior to having purchased a specific product.
The best cyber warranties also incentivize businesses to adopt and follow rigorous security protocols as a condition of coverage. They can be a powerful tool to boost the effectiveness of your organization’s cybersecurity strategy. The bottom line is that although insurance covers the possibility of something happening, a warranty assures that it will happen. It’s a big difference in a world that can be devastated by a single cybersecurity technology failure.