The Benefits of a Data Safety Warranty
Data breaches affect businesses every two seconds, and could cost $265 billion in 2031. It’s not surprising that distributors are increasingly offering a brand new kind of warranty to their customers. These warranties are designed to lower the financial risk posed by cyberattacks by shifting the responsibility from the MSP to the vendor. They are often used to complement cybersecurity insurance and fill in the gaps in the traditional policies that may fail.
A data security warranty can help businesses secure their sensitive information from online threats. However not all warranties are the same. Certain warranties have conditions which can require a company to pay a steep cost to retrieve information in the event of an incident.
For example, a manufacturer’s suggestions on machine use can prevent warranty coverage from covering the cost of replacing or fixing devices in the event of an unexpected issue. A «as-is» warranty disclaimer allows the vendor to avoid liability in the event that a buyer finds unexpected defects after the purchase of a certain product.
Cyberwarranties that are the most effective encourage companies to implement and adhere to the most robust security protocols. They can be a useful tool to increase the efficiency of your organization’s cybersecurity strategy. Bottom line, insurance covers the risks of something happening. A warranty guarantees that it will. This is a huge difference in the world where the consequences of a cybersecurity failure could be catastrophic.