Data breaches affect businesses every two seconds, and will cost them $265 billion in 2031. It is no surprise that distributors are increasingly offering a brand new kind of warranty to their customers. These warranties are designed to reduce the financial risk posed by cyberattacks, by transferring the responsibility from the MSP to the vendor. They are typically used to supplement cybersecurity insurance policies and fill in the gaps where they fail.
A data security warranty can help keep its sensitive information safe from online threats, however not all warranties are made equal. Some have rigid stipulations that could result in an organization paying a large cost for information retrieval in the event of a breach.
For example the manufacturer’s advice on machine usage can prevent a warranty from covering the cost of replacing or fixing the device in the event of an unexpected problem. A “as-is” warranty disclaimer permits the vendor to avoid liability in the event that a purchaser discovers a defect that is not apparent prior to getting possession of a specific product.
The best cyber warranties incentivize businesses to implement and follow robust security protocols as a condition of coverage. They can become an effective instrument to boost the overall effectiveness of your organization’s cybersecurity strategy. The bottom line is that insurance covers the potential for something Home Page to happen. A warranty guarantees that it will. That’s a big difference a world where the ramifications of a cybersecurity technology malfunction can be devastating.