It’s not a surprise that more distributors offer customers the most recent warranty that includes cybersecurity. Data loss is estimated to cost businesses $265 billion in 2031. These guarantees are designed to limit the economic risk of cyberattacks and shift responsibility to the vendor. They typically fill the gaps left by insurance.
Nevertheless it is true that not all warranties for cybersecurity are created equal. Certain warranties come with strict conditions that could lead to your business paying a high cost for information returning, particularly in the event that you aren’t aware of the fine print. The majority of warranties on technology, for example have a limit on the amount of money you pay based on the amount that the vendor invested in their solution. This is not a good thing since the value of a single record in your Cohesity FortKnox might be much higher than the total amount spent on license costs with a specific technology vendor.
For instance, if an existing Rubrik customer and you are not able to recover your data because of an attack by ransomware, their warranty will pay for what they call „Recovery Incident Expenses.” However they require receipts for the amount of hours staff members devote to the recovery process. This is a major red flag because the cost of reduced productivity for employees could be much more costly than the total amount of time that the software was utilized during that period. The incorporation of representations and warranties that focus on the legal handling of data, even to the most distant section of a business can reduce costly risk during M&A deals.