Data breaches affect businesses every two seconds, and could cost $265 billion by 2031. It’s no surprise that distributors are offering a new type of warranty for buyers. These warranties are designed to minimize the economic risk associated exchanging business documentation with cyberattacks, by transferring the liability from the MSP to the vendor. They are typically used to complement cybersecurity insurance policies and fill in the gaps where they may are not sufficient.
A data security warranty can help businesses protect their personal information from online threats. However not all warranties are created equal. Certain warranties have strict stipulations which can result in an enterprise paying a huge price tag towards information retrieval in the event of a security breach.
For instance, a manufacturer’s suggestions on how to use the machine could prevent an insurance policy from covering the cost of replacing or fixing the device in the event of an unexpected problem. Additionally an “as is” warranty disclaimer can help the vendor avoid liability if buyers discover unexpected defects following taking possession of a product.
Cyberwarranties that are the best also encourage businesses to adopt and adhere to strict security protocols. They can be an effective tool to boost the effectiveness of your cybersecurity strategy. The bottom line is that even though insurance covers the possibility of things happening, a warranty ensures it will happen. That’s a big difference an environment where the consequences of a cybersecurity technology malfunction could be catastrophic.
