It’s not a surprise that more distributors provide customers the most recent warranty that includes cybersecurity. Data loss is expected to cost businesses $265 billion in 2031. These warranties are designed to reduce the economic consequences of cyberattacks, and shift liability to the vendor. They usually fill in the gaps that insurance companies leave.
However there are many different warranties for cybersecurity are created equal. Some experience rigid stipulations that could result in your company paying a significant amount for information being returned, especially if you’re not aware of the details. For instance, the majority of technology warranties limit payment according to the amount the vendor spent on their solution. This isn’t helpful as the value of one record in your Cohesity FortKnox might be much higher than the total amount that was spent on licensing costs with a specific technology vendor.
For instance, if you’re one of the Rubrik https://www.toptechno24.com/intensive-complex-performance-with-virtual-data-room customer and are not able to recover your data because of an attack with ransomware the warranty will compensate for what they call “Recovery Incident Expenses.” However they will require receipts for the number of hours employees spend on the recovery incident. This is a red flag, as the cost of lost productivity of employees could be more than the time spent using the software during the period. By incorporating representations and warranties that are focused on the legal processing of data to the most distant department of a company could reduce costly risk during M&A deals.