It’s not a surprise that more distributors offer buyers the latest warranty which is the cybersecurity assurance. Data loss is expected to cost businesses $265 billion by 2031. These warranties are intended to visit this website limit the economic risk that are associated with cyberattacks. They also remove any liability that is transferred to the vendor, frequently to fill in the gaps where insurance might not cover a damage.

However, as with any other type of warranty, not all cybersecurity warranties are created equal. Some experience rigid stipulations that could keep your business paying a high cost for information that is returned, particularly if you’re not aware of the fine print. Most warranties on technology, for example, limit payment based upon how much the provider invested in their product. This isn’t a good thing since the value of one particular record in Cohesity FortKnox may be more than the licensing costs paid to a technology vendor.

This is a huge red flag since the cost of losing productivity of employees could be higher than the total amount of time that the software was used in the time. This is a red flag as the cost of lost productivity of employees could be greater than the time they spent using the software over that period. Including representations and warranties which focus on the legal processing of data up to the most distant division of a company can lower the risk of costly losses in M&A deals.