--- title: "Cyber Warranty vs Cyber Insurance: What South African SMEs Should Know" description: What a cyber warranty covers, how it differs from cyber insurance, and why the Cyber Guard warranty covers far more than most. A guide for SA SMEs. image: https://www.cyber-guard.co.za/hubfs/article-6-warranty-vs-insurance.png --- ![](https://www.cyber-guard.co.za/hubfs/raw_assets/public/@marketplace/kalungicom/atlas-theme/images/Logoipsum.svg) - [PRODUCT](https://www.cyber-guard.co.za/product) - [PRICING](https://www.cyber-guard.co.za/pricing) - [RESOURCES](https://www.cyber-guard.co.za/resources) - [BLOG](https://www.cyber-guard.co.za/blog) - [ABOUT](https://www.cyber-guard.co.za/about) SIGN IN GET A DEMO Cyber Insurance & Warranty # Cyber Warranty vs Cyber Insurance: What South African SMEs Should Know What a cyber warranty covers, how it differs from cyber insurance, and why the Cyber Guard warranty covers far more than most. A guide for SA SMEs. [Jayson](https://www.cyber-guard.co.za/cyber-guard-blog/author/jayson) Oct 25, 2026 --- **A cyber warranty is financial cover that comes included with a security service: if you suffer a qualifying cyber incident while the protection is active, the warranty pays towards your losses. Cyber insurance is a separate policy you buy from an insurer, usually with an application, a premium and an excess.** Most cyber warranties only cover a slice of the clean-up costs. The Cyber Guard warranty is different: it is backed by a full corporate cyber policy underwritten by Hollard, so it covers the kinds of losses you'd expect from standalone insurance, at no extra cost. *This article is general information, not financial or insurance advice. Always read the terms of any warranty or policy.* ## What is a cyber warranty? A cyber warranty is a financial guarantee, backed by an insurer, that comes with a security product or service. It shows the provider stands behind its protection. Every paid Cyber Guard plan includes a cyber warranty of up to R1,000,000, underwritten by The Hollard Insurance Company through iTOO Special Risks, and arranged by our licensed broker partner. ## What does the Cyber Guard warranty cover? Cover applies after a **network breach** (hacking, malware, ransomware, a denial of service attack, or theft of devices or paper records) or a **privacy breach** (personal information of staff, clients or suppliers being leaked, exposed or misused). **Your own losses:** - **Incident response:** IT forensic experts to find the cause and contain the damage, plus legal, PR and crisis communications support, and help dealing with the Regulator and police - **Initial response with no deductible** for a set period, so specialists can start immediately - **Business interruption:** lost income and running costs after an attack, a system failure, or taking systems offline to contain an incident - **Ransomware and extortion:** costs to deal with the threat, including ransom payments and buying cryptocurrency - **Data restoration:** restoring, replacing or recovering lost, stolen or corrupted data - **Theft of funds:** money or goods you can't recover after a network breach, or after paying a fraudulent payment instruction, provided your proper verification process was followed - **Regulatory fines:** fines imposed by a government regulator after a privacy breach - **Notifying and protecting affected people,** including credit and identity theft monitoring - **Card payment breaches:** fines, penalties and chargebacks under your merchant agreement - **Physical damage** to equipment as a direct result of a cyber incident - **Incidents at your outsourced IT providers,** including costs to switch provider - **Phone system fraud:** call and data costs when criminals hijack your phone system - **Security improvements** after an approved claim **Claims made against you:** defence and settlement of claims after a privacy breach, an attack that spreads to someone else's systems, harmful online content (such as defamation or copyright issues), or mental anguish caused by a cyber incident. The warranty applies to paid plans while Cyber Guard protection is active and up to date on the affected devices. Limits, deductibles and exclusions apply as set out in the policy wording, which our broker partner takes you through when you sign up. [See how the warranty works](https://www.cyber-guard.co.za/cyber-warranty). ## What is cyber insurance? Cyber insurance is a standalone policy you buy yourself. Depending on the policy, it covers your own losses and claims made against you. Premiums depend on your industry, revenue and the security you already have in place, and insurers increasingly require controls such as MFA, device protection and backups before they'll quote. ## Cyber warranty vs cyber insurance at a glance | | Typical cyber warranty | Cyber Guard warranty | Standalone cyber insurance | | --- | --- | --- | --- | | How you get it | Included with a product | Included in every paid plan | Bought from an insurer or broker | | Extra cost | None | None | Monthly or annual premium | | Your own losses | Usually limited clean-up costs | Broad, including lost income, ransom and theft of funds | Broad, depending on the policy | | Claims against you | Rarely | Yes | Usually | | Limit | Varies | Up to R1,000,000 | Chosen by you | | Comes with protection | Yes | Yes, managed 24/7 | No, you arrange security yourself | Want protection and cover in one? Our free cyber risk assessment shows where your business is exposed and how the warranty fits in. [Get my free risk assessment](https://www.cyber-guard.co.za/free-risk-assessment) ## Do I still need separate cyber insurance? For many SMEs, the Cyber Guard warranty gives you the cover you need without a separate policy. You may still want more if: - **Your potential losses are larger than R1,000,000,** for example if you move large sums or hold a lot of sensitive data. Our broker partner can arrange a higher limit. - **Your contracts name a specific cyber insurance requirement,** such as a minimum limit or named insurer. - **You need cover for risks outside the policy wording.** Your broker can explain the exclusions. ## Why security still comes first Cover pays the bill; it doesn't stop the attack. You'd still face downtime, upset clients and possible [POPIA obligations](https://www.cyber-guard.co.za/cyber-guard-blog/popia-and-cyber-security-what-smes-must-do-before-and-after-a-breach). That's why the warranty comes with 24/7 managed protection, and why some cover depends on good habits, such as [verifying banking changes by phone before paying](https://www.cyber-guard.co.za/cyber-guard-blog/business-email-compromise-and-invoice-fraud-how-the-scam-works-in-south-africa). Start with the basics in our [guide to business email security](https://www.cyber-guard.co.za/cyber-guard-blog/business-email-security-in-south-africa-a-practical-guide-for-smes). ## How Cyber Guard combines protection and cover Cyber Guard is a Johannesburg-based managed security provider powered by Trend Micro: - Protection for email, laptops, desktops, phones and Microsoft 365 - 24/7 detection and response by Trend Micro AI and the Cyber Guard team - A cyber warranty of up to R1,000,000 on every paid plan, at no extra cost - Plans from R69 per user per month, month-to-month, minimum 5 users. [See pricing](https://www.cyber-guard.co.za/pricing), or [what a typical SME pays](https://www.cyber-guard.co.za/cyber-guard-blog/how-much-does-cyber-security-cost-for-a-small-business-in-south-africa). Try Cyber Guard free for 30 days Up to 25 devices. No card needed. The warranty starts when you subscribe to a paid plan. [Start my free trial](https://www.cyber-guard.co.za/free-trial-1) ## Frequently asked questions ### Is a cyber warranty the same as insurance? Not usually. Most warranties cover a narrow set of costs. The Cyber Guard warranty is backed by a full corporate cyber policy underwritten by Hollard, so it covers much of what standalone insurance does, but it's included in your plan with no separate premium. ### Does the Cyber Guard warranty cost extra? No. It's included in every paid plan: Essentials, Business and Complete. ### Does it cover ransom payments and money lost to fraud? Yes. It covers cyber extortion, including ransom payments, and theft of funds, including fraudulent payment instructions where your proper verification process was followed. Limits and conditions apply. ### Who underwrites the Cyber Guard warranty? The Hollard Insurance Company, through iTOO Special Risks, an authorised financial services provider. Our licensed broker partner signs you up. ### Is the warranty active during the free trial? No. The free trial covers the software only. The warranty starts when you subscribe to a paid plan and our broker partner has signed you up. ### How do I claim on the warranty? Call Cyber Guard on +27 68 918 3511 as soon as you suspect an incident, and report it to the police. Specialists contain the threat and preserve evidence, Hollard and our broker partner assess the incident against the warranty terms, and approved costs are paid out in line with those terms. *Source: [Cyber Guard warranty](https://www.cyber-guard.co.za/cyber-warranty). Cover is underwritten by The Hollard Insurance Company Limited, a licensed non-life insurer, through iTOO Special Risks (Pty) Ltd, an authorised financial services provider. Limits, deductibles and exclusions apply.* [Cyber Insurance & Warranty](https://www.cyber-guard.co.za/cyber-guard-blog/tag/cyber-insurance-warranty) [Pricing & Costs](https://www.cyber-guard.co.za/cyber-guard-blog/tag/pricing-costs) ## Similar posts Industry Guides ### [Cyber Security for Medical Practices in South Africa](https://www.cyber-guard.co.za/cyber-guard-blog/cyber-security-for-medical-practices-in-south-africa) Jayson Oct 25, 2026 POPIA & Compliance ### [POPIA and Cyber Security: What SMEs Must Do Before and After a Breach](https://www.cyber-guard.co.za/cyber-guard-blog/popia-and-cyber-security-what-smes-must-do-before-and-after-a-breach) Jayson Oct 25, 2026 Email Security ### [Business Email Compromise and Invoice Fraud: How the Scam Works in South Africa](https://www.cyber-guard.co.za/cyber-guard-blog/business-email-compromise-and-invoice-fraud-how-the-scam-works-in-south-africa) Jayson Oct 25, 2026 ## Worried about your business's cyber security? Tell us a little about your business and one of our Johannesburg-based security specialists will contact you within one business day. No obligation, no sales pressure. [Book my free risk assessment](https://www.cyber-guard.co.za/free-risk-assessment) [or start a 30-day free trial →](https://www.cyber-guard.co.za/free-trial-1) Prefer to talk? Call [+27 68 918 3511](tel:+27689183511) ![](https://www.cyber-guard.co.za/hubfs/raw_assets/public/@marketplace/kalungicom/atlas-theme/images/Logo-White.svg) Company 1234 5th AVE N. Seattle, WA 98101 ### Product - Login - Overview - Another one - Meetings - Action Items ### Solutions - Team meetings - Remote meetings - Another one - Functional - Executive ### Resources - Blog - Podcast - Templates - Newsletter - Help center ### Company - Blog - Podcast - Templates - Newsletter - Help center © 2020 Company All rights reserved Privacy Policy [Powered by Atlas - a B2B SaaS HubSpot theme](https://www.kalungi.com/atlas-hubspot-theme-for-b2b-saas-software) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jayson", "url" : "https://www.cyber-guard.co.za/cyber-guard-blog/author/jayson" }, "dateModified" : "2026-10-25T13:12:47.309Z", "datePublished" : "2026-10-25T13:06:06.000Z", "headline" : "Cyber Warranty vs Cyber Insurance: What South African SMEs Should Know", "image" : [ "https://www.cyber-guard.co.za/hubfs/article-6-warranty-vs-insurance.png" ], "mainEntityOfPage" : { "@id" : "https://www.cyber-guard.co.za/cyber-guard-blog/cyber-warranty-vs-cyber-insurance-what-south-african-smes-should-know", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.cyber-guard.co.za/hubfs/Copy%20of%20CYBER%20GUARD%20Racing%20%20(Website).png" } } } ```