Fulcrum IT Partners, an MSP, calls them “cyber-warranty backed solutions” and is offering the services with the backing of SPECTRA, the Bermuda-based cyber insurance provider.
“As part of the new business model, Fulcrum will offer customers a 100 percent cash refund on services impacted by specific cybersecurity incidents, including ransomware, and DDoS attacks. Additionally, Fulcrum customers with this warranty can receive payments up to $1,000,000,” notes the press release.
The cybersecurity insurance industry is increasing relying on integrated technology/insurance solutions for underwriting and security monitoring, with Beazley a recent example. The Fulcrum/SPECTRA offering is a variation on this theme, with Fulcrum in effect offering services to customers that are validated and guaranteed in partnership with a third party, SPECTRA.
The devil, of course, is in the details, as anyone knows who’s tried to redeem a warranty for a consumer product. How tight is Fulcrum’s guarantee? What does it take to get the “payment(s) up to $1,000,000?” What’s the value of the Fulcrum warranty for insurance buyers seeking to add coverage above $1 million and/or from other providers. Worth remembering is another connotation of “warranty” in insurance, which refers to representations made by insureds that, if inaccurate, void their insurance.
All that said, Fulcrum is differentiating itself from many competitors with these cyber warranty solutions. The firm is offering them in the UK initially, using its Tieva brand, and says it will expand coverage across its global network of MSPs this year.