Data breaches are affecting businesses every second, and could cost $265 billion in 2031. It is no surprise that distributors are now offering a different type of warranty to buyers. These warranties are designed to reduce the financial risk associated with cyberattacks by shifting the responsibility from the MSP to the vendor. They are frequently utilized to complement cybersecurity insurance policies and fill in the gaps where they fall short.
A data security warranty can help businesses protect its sensitive information from online threats, however not all of them are all created equal. Some have rigid stipulations that can prevent an enterprise from paying a large cost for information retrieval in the event of a breach.
For example the manufacturer’s recommendations on the use of a machine can block the warranty from covering the cost of replacing or repairing devices in the case of an unexpected problem. A “as-is” warranty disclaimer allows the seller to not be held accountable in the event that a purchaser discovers unexpected defects after the purchase of a certain product.
Cyber-security warranties that are the best also encourage companies to follow and adhere to robust security protocols. They can be a valuable tool to increase the efficiency of your company’s cybersecurity Home Page plan. Bottom line, insurance covers the potential for something to happen. A warranty guarantees that it will. This is a significant difference in a world where the ramifications of a single cybersecurity technology failure could be catastrophic.