The Benefits of a Data Safety Warranty

With data breaches impacting companies every two Recommended Reading seconds and estimated to cost businesses $265 billion by 2031, there is no wonder more distributors are offering buyers an entirely new type of warranty. These warranties are designed to help reduce the economic risks from cyberattacks, by transferring liability from the MSP or their buyer to the vendor. They often supplement cybersecurity insurance and fill in gaps where traditional policies might fail.

A data security warranty can assist businesses in protecting their personal information from online threats. However not all warranties are created equal. Certain warranties have strict stipulations that can keep an enterprise forking over a big cost for information retrieval in the event of a breach.

A manufacturer’s advice on how to use a machine will not be covered by a warranty that covers the cost of repairing or replacing the device in the event of an unexpected problem. A “as-is” warranty disclaimer permits the vendor to avoid liability in the event that a purchaser discovers unexpected flaws after the purchase of a certain product.

Cyberwarranties that are the best also encourage businesses to adopt and adhere to robust security protocols. This means they can become an effective tool for increasing the overall effectiveness of your organization’s cybersecurity strategy. In the end, insurance takes care of the possibility of something happening. A warranty guarantees that it will. It’s a huge distinction in a world that could be devastated by a single cybersecurity technology failure.