With data breaches affecting companies every second and expected to Recommended Reading cost businesses $265 billion by 2031, there is not surprising that more distributors are providing buyers with new warranties. These warranties are designed to reduce the financial risk associated with cyberattacks, by transferring the responsibility of the MSP to the vendor. They often supplement cybersecurity insurance and fill in the gaps where traditional policies might fail.

Incorporating a data safety warranty will help keep its sensitive information safe from online risks, but not all of them are created equal. Certain warranties have strict terms that can force businesses to pay a steep cost for information retrieval in the event of an incident.

A manufacturer’s instructions on how to use a device could prevent a warranty from covering the cost of repairing or replacing the device in the event of a sudden problem. A “as-is” warranty disclaimer permits the vendor to abstain from liability in the event that a purchaser discovers unexpected flaws after having purchased a specific product.

The best cyber warranties encourage companies to implement and adhere to robust security protocols as a condition of coverage. As a result, they are a great tool to increase the overall effectiveness of your business’s cybersecurity strategy. Bottom line, insurance covers the potential for something to happen. A warranty ensures that it will. It’s a huge difference in a world which could be devastated by one cybersecurity technology failure.