With data loss impacting an organization every two seconds, and projected to cost businesses $265 billion by 2031, it’s no wonder distributors are now offering customers the most current kind of warranty: the cybersecurity guarantee. These warranties are designed to reduce the financial risks associated with cyberattacks and remove any liability that is transferred to the vendor, oftentimes covering the gaps where insurance could not cover a particular damage.

However, as with any other type of warranty that are offered, not all cybersecurity guarantees are made equal. Some warranties have rigid conditions which could cost your business a lot of money if you don’t read the fine terms. Most warranties on technology, for example that limit payments based on the amount of money that the company invested in their product. This isn’t very helpful, as the value of one record in Cohesity FortKnox may be more than the license costs paid to a technology vendor.

For instance, if you’re an existing Rubrik customer and are not able to retrieve your data because of the threat of ransomware, their warranty will pay for what they call “Recovery Incident expenses.” However they need receipts for the amount of hours that staff members spend on the recovery incident. This is https://www.toptechno24.com/how-to-remove-the-avast-email-signature a red flag as the cost of lost productivity by employees could be significantly higher than the time they spent using the software in that period. The incorporation of representations and warranties that focus on the legal handling of data, even to the most distant department of a company could minimize the risk associated with M&A deals.