With data breaches affecting companies every two seconds and estimated to cost businesses $265 billion by 2031, there is not surprising that more distributors are providing buyers with a new kind of warranty. These warranties are designed to limit the economic risk of cyberattacks by shifting liability from the MSP or their buyer to the vendor. They often complement cybersecurity insurance and fill in the gaps where traditional policies may fall short.
Incorporating a data safety warranty can help businesses protect its sensitive data from online risks, but not all of these warranties are alike. Certain warranties come with strict conditions that can force businesses to pay a steep cost for retrieving information in the event of a breach.
For instance, the manufacturer’s suggestions regarding the use of a machine can block the warranty from covering the cost of replacing or perhaps repairing devices in the case of an unexpected problem. A “as-is” warranty disclaimer permits the vendor to abstain from liability in the event that a purchaser discovers unexpected flaws after taking possession of a particular product.
Cyber-security guarantees that are the best encourage companies to adopt and adhere to strict security protocols. They can be a powerful tool to increase the effectiveness of your company’s cybersecurity strategy. The key point is that while insurance covers the risk of something happening, a warranty guarantees that it will occur. This is a significant difference in a world where the ramifications of a cybersecurity failure can be devastating.
