Data Safety Warranties – Are All Cybersecurity Warranties Created Equal?

It’s not a surprise that more distributors offer customers the most current warranty security assurance. Data loss is estimated to cost businesses $265 billion by 2031. These warranties are designed to mitigate the economic risk of cyberattacks, and shift liability to the vendor. They are often used to fill in the gaps left by insurance.

Nevertheless there are many different warranties for cybersecurity are the same. Certain warranties come with strict terms that can cost your company a lot of money if you don’t study the fine terms. Most warranties for technology, like are based on how much the provider invested in their solution. This isn’t a good idea since the value of one record in your Cohesity FortKnox might be much more than the sum spent on license costs for a particular technology vendor.

For instance, if you’re 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 https://www.toptechno24.com/board-meeting-minutes-legal-requirements-to-achieve-in-board-of-directors-software/ staff members have to devote to the recovery. This is a red flag because the cost of lost productivity of employees could be much higher than the time spent using the software over that period. In this way, including representations and warranties that focus on the legal processing of information right down to the most remote division of a business can reduce the risk of financial loss during M&A transactions.