Data breaches are affecting companies every two seconds and expected to cost businesses $265 billion by 2031, it is no wonder that distributors are providing buyers with an entirely new type of warranty. These warranties are designed to lower the risk of economic loss resulting from cyberattacks by shifting the responsibility of the MSP to the vendor. They often complement cybersecurity insurance and fill in the gaps where traditional policies might fall short.
A data security warranty will help protect its sensitive information from online threats, but not all warranties are made equal. Certain warranties come with strict conditions that can force businesses to pay a high price for information retrieval if there is an incident.
For example, a manufacturer’s suggestions on machine use can prevent the warranty from covering the cost of replacing or repairing devices in the case of an unexpected issue. A “as-is” warranty disclaimer allows the seller to avoid liability in the event that a buyer discovers unexpected defects after taking possession of a particular product.
Cyber warranties that are the most effective encourage businesses to adopt and adhere to strict security protocols. This means they can become a useful tool to increase the overall effectiveness of your business’s cybersecurity strategy. In the end, insurance covers the risks pop over here of something happening. A warranty ensures that it will. It’s a huge difference in a world where the entire world could be devastated by a single cybersecurity technology failure.