Cork, a new company with a new idea, has gotten off to a great start, with millions in seed funding and support from a cadre of high-profile Datto alum advisers and vendors like Barracuda Networks. Coming out of stealth earlier this month, Cork’s “big idea” is a cyber warranty product that MSPs can bundle and sell to customers and fills a gap that cyber insurance doesn’t cover. ChannelPro talked to CEO Carlson Choi about how cyber warranties are different from cyber insurance and how products like this give MSPs more ways to improve customer service while creating a new recurring revenue stream.
ChannelPro: How is a cyber warranty solution like Cork different from cyber insurance?
Choi: Cyber insurance is longtail coverage (that covers expenses related to getting the business back up and running after a cyber event), while cyber warranties warrant specific things. It is attached to a specific technology stack. If you break your iPhone glass, for example, a warranty will replace the glass. But if you cut your finger and got a medical bill, that would be covered by cyber insurance. Our warranties attached to a set of technology sold by the MSP. Essentially, it warrants the specific technology stack the customer has in place. It’s not a substitution for cyber insurance. It’s additional protection for specific incidents.
ChannelPro: How does it work?
Choi: Unlike original manufacturers’ warranties, which warrant only specific solutions, Cork is vendor-agnostic. That means MSPs can connect it to an existing technology stack as long as they can connect to at least one product Cork supports. Then we underwrite purely based on that connection. That connection also means we have access to real-time data we can use to notify them of issues they should look into, like a change in multifactor authentication. Those alerts help MSPs create safer environments for their clients, and they can also reduce the risk of incidents from occurring. Because we collect real-time information through those integrations, we have a real pulse on the current cyber safety of the environment instead of relying on historical data.
ChannelPro: How can a solution like Cork benefit MSPs?
Choi: MSPs can sell these warranties to their customers along with their services without being a licensed agent or broker. Typically, it’s a sell-through product where the MSP can decide to mark up the transfer price. And the more integrations they make, the lower the transfer price. They can even choose to keep the savings from the integration opportunity if they want to. Secondly, it helps MSPs remediate clients’ issues faster, because Cork gives the MSP a heads up that a problem exists. It also pays quickly, meaning that MSPs can start fixing the problem immediately.
ChannelPro: And for their customers?
Choi: Even customers that already have cyber insurance can benefit. Not only does the warranty cover deductibles, ransom payments, and other things that cyber insurance doesn’t, customers also can bill against a warranty for remediation from the MSP. And while cyber insurance can take months to pay up, this warranty pays out within days.
KAREN D. SCHWARTZ has written hundreds of feature articles, hard news pieces, white papers, case studies, and book chapters on a variety of technology and business topics. She resides in Potomac, Md., and can be reached at firstname.lastname@example.org.