It’s not a surprise that more distributors offer customers the most current warranty: the cybersecurity assurance. Data loss is expected to cost businesses $265 billion in 2031. These warranties are designed to minimize the economic risks that are associated with cyberattacks. They also remove the responsibility of the vendor, oftentimes to fill in the gaps where insurance could not cover the cost of a damaged.
However, not all warranties for cybersecurity are created equal. Certain warranties have strict conditions that can cost your company a lot of money in the event that you don’t understand the fine details. For instance, many technology warranties limit payment according to the amount the company spent on their solution. This is not very helpful, as the value of a particular record in Cohesity FortKnox may be more than the cost of a license to a technology company.
For instance, if a Rubrik customer and you’re not able recover your data because of an attack by ransomware their warranty will pay for what they call « Recovery Incident Costs. » However they need receipts for the amount of hours staff members devote to the recovery process. This is a red flag, because the price of lost productivity of employees could be greater than the time spent using the software over that period. Incorporating representations and warranties that concentrate on the legal processing of data, even to the smallest section of a business can reduce the risk of costly M&A deals.