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 expected to cost businesses $265 billion in 2031. These guarantees are designed to limit the economic consequences of cyberattacks and transfer liability to the vendor. They typically fill in the gaps left by insurance.

But, just like other type of warranty, not all cybersecurity warranties are created equal. Some experience rigid stipulations that could result in your company paying a large price towards data return, especially when you’re not familiar with the fine print. The majority of warranties on technology, for example are based on how much the provider invested in their solution. This isn’t helpful as the value of a single record in your Cohesity FortKnox might be much more than the total amount spent on license costs with a specific technology provider.

This is a red flag as the cost of losing productivity of employees can be more expensive than the total amount of time that the software was in use during the period. This is a big alarm because the price of lost productivity can be much more costly than the total amount of time that the software was in use during that period. For this reason, including representations and warranties that focus on the lawful processing of data all the way down to the most remote part of a business will help minimize risk that is costly during M&A transactions.

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