29 Jun

With data loss impacting an organization every two seconds, and projected to cost businesses $265 billion by 2031, it’s not surprising that more distributors are providing customers with the most up-to-date kind of warranty which is the cybersecurity guarantee. These warranties are designed to reduce the financial risks that are associated with cyberattacks. They also remove any liability that is transferred to the vendor, usually to fill in the gaps where insurance may not be able to cover a loss.

However, like every other type of warranty there are different cybersecurity warranties. Not all are data safety warranty created equal. Certain warranties have strict conditions that can cost your business lots of money in the event that you don’t understand the fine details. For instance: most technology warranties limit payment by the amount that the provider invested in their solution. This is not helpful since the value of a single file in your Cohesity FortKnox might be much greater than the total amount of money spent on licensing fees with a specific technology provider.

For instance, if you’re an existing Rubrik customer and you’re not able to retrieve your data due to a ransomware attack the warranty will compensate for what they call “Recovery Incident Costs.” However they will require receipts for the amount of hours employees devote to the recovery process. This is a huge warning because the cost of lost employee productivity could be much more costly than the total amount of time the software was in use during that period. By incorporating representations and warranties that concentrate on the legal processing of data down to the smallest section of a business can lower the risk of costly losses in M&A deals.