Data breaches affect businesses every second, and could cost $265 billion in 2031. It’s no surprise that distributors are offering a new type of warranty for buyers. These warranties are designed to lower the risk of economic loss resulting from cyberattacks by shifting the liability from the MSP to the vendor. They are often used to complement cybersecurity insurance and fill in gaps in the traditional policies that may fall short.
Incorporating a data safety warranty can help keep its sensitive information safe from online risks, but not all of them are all created equal. Certain warranties have strict stipulations that could result in an organization paying a huge cost for retrieving information in the event of a breach.
The manufacturer’s guidelines on how to use a device may not qualify for a warranty covering the cost of repair or replacing the device in the event of a sudden problem. A “as-is” warranty disclaimer permits the vendor to avoid liability in the event that a purchaser finds unexpected defects after taking possession of a particular product.
The best cyber warranties incentivize businesses to adopt and follow robust security protocols as an obligation of coverage. This means they can become an effective tool to increase the effectiveness of the overall cybersecurity strategy. The bottom line is that even though insurance covers the possibility of something happening, a warranty ensures it will happen. That’s a big difference the world where the consequences of a single cybersecurity technology failure can be devastating.