Data breaches are affecting businesses every two seconds and could cost $265 billion by 2031. It is no surprise that distributors are now offering a different kind of warranty to buyers. These warranties are designed to minimize Home Page the economic risk associated with cyberattacks, by transferring the responsibility from the MSP to the vendor. They are frequently used to complement cybersecurity insurance policies and fill in the gaps where they might are not sufficient.
The inclusion of a data security guarantee can help a business protect its sensitive data from online risks, but not all warranties are made equal. Some warranties have strict conditions that can force a business to pay a steep cost for retrieving data in the event of an incident.
A manufacturer’s recommendation on how to use a device can prevent a warranty covering the cost of repair or replacing the device in the event of an unexpected problem. A “as-is” warranty disclaimer allows the seller to avoid liability in the event that a buyer finds unexpected defects after having purchased a specific product.
The best cyber warranties also incentivize businesses to adopt and follow strict security protocols as part of the policy. They can be a valuable instrument to improve the effectiveness of your company’s cybersecurity plan. The key point is that although insurance covers the risk of things happening, a warranty guarantees that it will occur. It’s a huge difference in a world which could be devastated by a single cybersecurity technology failure.