It’s no surprise that more distributors offer customers the most recent warranty which is the cybersecurity assurance. Data loss is predicted to cost businesses $265 billion in 2031. These guarantees are designed to reduce the financial risks that are associated with cyberattacks. They also remove the responsibility of the vendor, often filling the gaps where insurance might not cover a damage.
Nevertheless there are many different warranties for cybersecurity are the same. Some warranties have rigid conditions which could cost your business lots of money if you don’t study the fine print. For instance, most technology warranties limit payment depending on the amount the provider invested in their solution. This isn’t a good thing because the value of a particular record in Cohesity FortKnox may be more than the license costs paid to a technology company.
For instance, if you’re a 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 need receipts for the amount of hours employees spend on the recovery incident. This is a red flag since the cost of loss of productivity by employees could be more than the time spent using the software during the period. Incorporating representations and warranties that focus on the legal processing of data down to the smallest section of a business can reduce the risk of costly M&A deals.
