Data breaches affect businesses every two seconds and will cost them $265 billion by 2031. It’s not a surprise that distributors are now offering a different kind of warranty to buyers. These warranties are designed to mitigate the economic risks from cyberattacks, by transferring responsibility from the MSP to their purchaser to the vendor. They are often used to supplement cybersecurity insurance policies and fill in the gaps where they may fail.
Incorporating a data safety warranty can help businesses keep sensitive information secure from online threats, however not all these warranties are alike. Certain warranties have strict terms that could force a company to pay a high price for retrieving data if there is an incident.
For instance the manufacturer’s recommendations on how to use the machine could 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 seller to not be held accountable in the event that a buyer discovers a defect that is not apparent prior to taking possession of a particular product.
The best cyber warranties incentivize businesses to adopt and follow strict security protocols as a condition of coverage. They can be a useful instrument to improve the effectiveness of your organization’s cybersecurity strategy. The main point is that while insurance covers the possibility of something happening, a warranty guarantees that it will occur. This is a significant difference in an era where the consequences of a cybersecurity technology malfunction can be devastating.