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Tailoring Cyber Warranties to Your Business’s Unique Needs

Tailoring Cyber Warranties to Your Business’s Unique Needs

Cyberattacks and data breaches are growing threats for businesses of all sizes. While traditional cyber insurance offers some protection, it often follows a one-size-fits-all approach that leaves gaps in coverage. Cyber warranties, however, allow for more customized protection to match your company’s specific risks and needs.

The Case for Cyber Warranties

Cyber warranties differ from typical insurance in a few key ways:

  • Comprehensive coverage – Warranties bundle numerous protections into one policy, including breach response, cyber extortion, social engineering losses, and more. Insurance may limit or exclude some of these.
  • Flexibility – Warranty coverage can be tailored with endorsements to match your business requirements rather than fitting into preset options.
  • Better claims process – Warranty claims tend to get handled faster and have more collaborative adjustment with preset protocols.
  • Traditional insurance forcing businesses into ill-fitting policies with gaps in protection. Cyber warranties provide an important alternative.

Tailoring Coverage to Your Risk Profile

The first step is understanding your company’s unique cyber risk profile. Assess factors like:

  • Industry and data collected
  • Data storage and security systems
  • Compliance needs and vulnerabilities
  • Past cyber incidents and losses

This allows you to identify your greatest exposures. Coverage can then be adapted to match. For example, a software company may need added protection against extortion threats. A retailer may focus more on POS system coverage and theft.

Work with an experienced broker to shape the right warranty solution. Useful add-ons may include:

  • Breach response – Legal, investigation, notification, fraud resolution, and PR services
  • Cyber extortion – Ransomware, extortion threats, and business email compromise
  • Social engineering – Coverage for losses arising from social engineering scams
  • Errors and omissions – Protection against claims related to IT security failures

Service Desk vs. Help Desk: What Are the Key Differences?

The Warranty Claims Process

While claims processes vary, cyber warranties aim to expedite resolution. Below are some common protocols:

  • Notice – Notify insurer promptly, within 48-72 hours. Provide incident details.
  • Investigation – Insurer and insured collaborate on investigating the incident’s cause and extent.
  • Documentation – Gather evidence like forensics, police reports, and damage assessments to support the claim.
  • Resolution – Insurer provides covered services and payments within agreed-upon time frames after claim acceptance.
  • Proper documentation is critical for an efficient claims process. Maintain thorough incident records and evidence.

Key Takeaways

  • Cyber warranties allow for tailored, comprehensive protection unlike traditional insurance.
  • Assess your unique risk profile then work with an expert to customize coverage.
  • The warranty claims process is designed to be faster and more collaborative.
  • Document incidents thoroughly to help facilitate smooth claims resolution.


What is better about cyber warranties vs traditional insurance?

Warranties allow for more customized and comprehensive coverage tailored to your business’s specific risks and needs. The claims process is also faster.

What should I look for in a cyber warranty provider?

Look for financial stability, experience with cyber coverage, strong customer service, and ability to customize coverage rather than take a one-size-fits-all approach. Getting recommendations from those in your industry is also helpful.

What can be covered under a cyber warranty?

Typical coverages include breach response, cyber extortion, errors and omissions, social engineering losses, crisis management/PR services, fines and penalties, and more. Add-ons can be included to match your risks.

How much does cyber warranty coverage cost?

Costs vary significantly based on your revenue, industry, data volume/sensitivity, and other risk factors. On average, small businesses may spend $500-$1500 annually on a cyber warranty policy.

Cyber Warranty Coverage Options


Breach response Legal, forensic, notification, and PR services if a breach occurs
Cyber extortion Ransomware attacks, extortion threats, etc.
Errors and omissions Negligence and IT security failures
Social engineering Financial fraud, wire transfer theft, phishing schemes
Crisis management PR services to mitigate reputation damage

Reaching out for an expert assessment of your risks and insurance options is highly recommended. Cyber warranties provide an opportunity to get protection truly tailored to your business’s needs. Let us provide a free warranty evaluation so we can explore the best coverage for you.