With data breaches affecting businesses every two seconds and expected to cost businesses $265 billion in 2031, it’s no wonder more distributors are providing buyers with new types of warranties. These warranties are designed to minimize the financial risk associated with cyberattacks, by transferring the responsibility from the MSP to the vendor. They are typically utilized 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 keep its sensitive information safe from online risks, but not all warranties are created equal. Certain warranties have strict stipulations that can keep an enterprise forking over a big cost to retrieve information in the event of a breach.
For instance the manufacturer’s recommendations on the use of a machine can block a warranty from covering the cost of replacing or repair of devices in the event of an unexpected issue. A “as-is” warranty disclaimer permits the vendor to avoid liability in the event that a purchaser discovers unexpected flaws after taking possession of a particular product.
Cyber-security guarantees that are the most effective encourage companies to adopt and adhere to robust security protocols. This means they are a great tool for increasing the effectiveness of your company’s cybersecurity strategy. In the end, insurance covers the risk of something happening. A warranty assures you that it will. This is a huge difference in a world which could be devastated by one cybersecurity technology failure.