Data breaches are affecting businesses every second, and will cost them $265 billion in 2031. It’s not a surprise that more distributors offer a new kind of warranty to their customers. These warranties are meant to reduce the financial risks that are associated with cyberattacks by shifting responsibility from the MSP or their buyer to the vendor. They are frequently used to complement cybersecurity insurance policies and fill in gaps in which they may fail.
A data security warranty can help protect its sensitive data from online hazards, but not all these warranties are all created equal. Certain have strict rules that could result in an organization paying a high cost for information retrieval in the event of a breach.
For instance, the manufacturer’s suggestions regarding how to use the machine could prevent a warranty from covering the cost of replacing or perhaps fixing devices in the event of an unexpected issue. A „as-is“ warranty disclaimer permits the vendor to avoid liability in the event that a buyer discovers unexpected flaws after having purchased a specific product.
Cyber-security warranties which are the best encourage businesses to follow and adhere to robust security protocols. They can become a useful tool to improve the effectiveness of your company’s cybersecurity strategy. The bottom line is that while insurance covers the risk of things happening, a warranty guarantees it will happen. That’s a big difference in an era where the consequences of a cybersecurity technology malfunction can be catastrophic.