Data breaches are affecting businesses every two seconds and could cost $265 billion by 2031. It’s not surprising that distributors are increasingly offering a brand new kind of warranty to their customers. These warranties aim to limit the economic risk associated with cyberattacks by transferring responsibility from the MSP or their purchaser to the vendor. They are often used to supplement cybersecurity insurance policies and fill in the gaps in which they may not be sufficient.
The inclusion of a data security guarantee can help keep sensitive information secure from online risks, but not all warranties are all created equal. Certain warranties have strict stipulations which can result in an enterprise paying a high cost for information retrieval in the event of a security breach.
For example the manufacturer’s advice on the use of a machine can block warranty coverage from covering the cost of replacing or repairing devices in the case of an unexpected issue. Additionally, an “as is” warranty disclaimer lets the seller not be held accountable if buyers discover unexpected flaws when they take possession of a product.
Cyber-security warranties which are the best encourage companies to follow and adhere to robust security protocols. They can be a useful instrument to improve the effectiveness of your company’s cybersecurity plan. The key point is that while insurance covers the risk of things happening, a warranty guarantees it will happen. That’s a big difference in a world where the ramifications of one cybersecurity technology failure could be catastrophic.