With data loss impacting businesses every two seconds, and projected to price businesses $265 billion by 2031, it’s not surprising that more distributors are offering customers the most current type of warranty: the cybersecurity guarantee. These warranties are designed to mitigate the economic risks of cyberattacks and transfer liability to the seller. They are often used to fill the gaps left by insurance.
Nevertheless there are many different warranties for cybersecurity are the same. Certain warranties have strict terms that could lead to your business paying a significant amount for information being returned, especially if you’re not aware of the fine print. For instance, many warranties on technology limit payments according to the amount the company spent on their solution. This is not a good thing since the value of a single entry in your Cohesity FortKnox might be much greater than the total amount that was spent on licensing costs with a specific technology vendor.
For instance, if a Rubrik customer check this site out and you are not able to retrieve your data because of a ransomware attack their warranty will pay for what they call «Recovery Incident Expenses.» However they require receipts for the amount of hours staff members are required to spend on the recovery. This is a big signal because the cost of reduced productivity for employees could be a lot more expensive than the total amount of time that the software was in use during that period. In this way, incorporating warranties and representations that focus on the legal processing of data right down to the most remote division of a company can help reduce risk that is costly when it comes to M&A transactions.