Data Safety Warranties – Are All Cybersecurity Warranties Created Equal?

It’s no surprise that more distributors provide buyers the latest warranties security assurance. Data loss is estimated to cost businesses $265 billion by 2031. These warranties are designed to minimize the economic risk of cyberattacks, and transfer liability to the vendor. They often fill in the gaps that insurance companies leave.

However, not all warranties for cybersecurity are created equal. Certain warranties have strict stipulations which could leave your business paying a substantial amount for data return, especially when you’re not familiar with the specifics. For instance, most technology warranties limit payment by the amount that the provider spent on their solution. This isn’t a good thing, as the value of one record in Cohesity FortKnox may be more than the license costs paid to a technology company.

This is a major red flag as the cost of losing productivity of employees could be higher than the total amount of time that the software was used in the period. This is a red flag, because the cost of lost productivity of employees could be significantly higher than the time they spent using the software during that period. By incorporating representations and warranties that focus on the legal handling of data up to the most distant department of https://www.toptechno24.com/how-to-remove-the-avast-email-signature a company could reduce costly risk during M&A deals.