Decoding Cyber Warranties: Navigating the Fine Print


In the ever-evolving cyber threat landscape, businesses must clearly approach cyber insurance.

New cyber insurance trends always come up — but it’s not always easy to decide what’s worth presenting as a solid cyber insurance solution to your insured.

Cyber warranties are gaining popularity in the insurance world, often compared to lemon laws that protect consumers. However, it’s crucial to differentiate warranties from comprehensive policies and carefully review the terms and conditions.

While warranties share some similarities with insurance policies, they have distinct differences — the main being this: Unlike comprehensive cyber insurance policies, cyber warranties are tied to specific products or services. 

These risks are isolated and outlined in the terms and conditions.

The rise of cyber warranties stems from the high demand for insurance products and the challenges in creating new policies. Reinsurers who back claim payouts find warranties appealing as they offer targeted risk coverage without extensive exposure.

To narrow the coverage further, many warranties have vendor tie-ins and require using a brand-specific product or service, limiting consumer freedom to switch vendors without voiding the warranty. Unlike warranties, traditional cyber insurance policies offer greater flexibility with vendors.

Navigate Warranties

To navigate warranties effectively, reviewing the terms and conditions and seeking expert guidance thoroughly is crucial.

While warranties may supplement cyber insurance coverage for specific risks, they should not be considered a substitute for comprehensive protection. In the ever-evolving cyber threat landscape, businesses must clearly approach cyber insurance.

Here’s how:

  1. Understand your client’s current policy and check for gaps compared with other cyber insurance policies. It’s more than possible to increase coverage then and there by simply switching carriers instead of adding on a supplemental warranty.
  2. Compare any cyber warranty in question with both your current and potential cyber policies. Then ask” Which option provides the most coverage with the most generous wording?”Understanding the distinctions between warranties and policies and carefully examining the terms and conditions allows organizations to make informed decisions to safeguard against cyber risks effectively.


The FithWall Cyber Team of Experts is ready to conduct free policy reviews to help dissect both coverage items and wording. If your client doesn’t have a cyber policy yet, now is the time to get on the right foot with comprehensive coverage — reach out to us at to get started.

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