With data breaches affecting businesses every two seconds and expected to cost businesses $265 billion by 2031, there is no wonder that distributors are providing buyers with an entirely new type of warranty. These warranties aim to limit the economic risk that are associated with cyberattacks by shifting responsibility from the MSP or their buyer to the vendor. They are usually used to complement cybersecurity insurance policies and fill in gaps where they may not be sufficient.
A data security warranty can help businesses safeguard their personal information from online hazards. However there are many different warranties that are created equal. Certain warranties have conditions which can require a company to pay a high price for information retrieval if there is an incident.
The manufacturer’s guidelines on how to use a device may not qualify for a warranty covering the cost of repairing or replacing the device in the case of an unexpected issue. A “as-is” warranty disclaimer permits the vendor to avoid liability in the event that a buyer discovers unexpected defects after taking possession of a particular product.
Cyber-security guarantees that are the most effective encourage companies to adopt and adhere to strict security protocols. They can be a useful tool to increase the effectiveness of your company’s cybersecurity strategy. The main point is that while insurance covers the possibility of an event happening, a warranty assures that it will happen. It’s a huge difference in a world that could be devastated by one cybersecurity technology failure.
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