It’s no surprise that more distributors offer customers the most recent warranty security assurance. Data loss is projected to cost businesses $265 billion by 2031. These warranties are designed to reduce the economic risks of cyberattacks and shift responsibility to the vendor. They are often used to fill the gaps left by insurance.
However it is true that not visit this website all warranties for cybersecurity are the same. Certain warranties come with strict terms that could cost your company many dollars when you don’t know the fine in the fine print. For instance, most warranties for technology restrict payment based on how much the provider invested in their solution. This isn’t a good thing since the value of one record in Cohesity FortKnox may be more than the amount of license fees paid to a technology vendor.
For instance, if an Rubrik customer and you are not able to retrieve your data due to an attack by ransomware their warranty will pay for what they call “Recovery Incident expenses.” However they need receipts for the number of hours staff members have to devote to the recovery. This is a red flag, as the cost of lost productivity by employees could be significantly higher than the time they spent using the software in that period. This is why incorporating representations and warranties that focus on the legal processing of data up to the smallest division of a company can help reduce risk that is costly during M&A transactions.