Data Safety Warranties – Are All Cybersecurity Warranties Created Equal?

With data loss affecting a company every two seconds and predicted to cost businesses $265 billion by 2031, it’s not surprising that distributors are now offering customers the most current kind of warranty: the cybersecurity guarantee. These warranties are intended to mitigate the economic risks that are associated with cyberattacks. They also remove the liability of the vendor, frequently covering the gaps where insurance might not cover a damage.

However, as with any other type of warranty that are offered, not all cybersecurity guarantees are alike. Certain warranties come with strict conditions that could lead to data safety warranty your business paying a significant amount for information returning, particularly when you’re not familiar with the specifics. For instance, most warranties on technology limit payments depending on the amount the provider spent on their solution. This isn’t a good idea since the value of a single file in your Cohesity FortKnox might be much more than the total amount that was spent on licensing costs with a specific technology provider.

This is a major red flag because the cost of losing employee productivity could be much more expensive than the total amount of time the software was used in that period. This is a big red flag because the cost of lost employee productivity could be more expensive 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 up to the most distant division of a company can reduce costly risk during M&A deals.