With data loss impacting an organization every two seconds and predicted to cost businesses $265 billion by 2031, it’s not surprising that more distributors are providing customers with the most up-to-date type of warranty that includes a cybersecurity guarantee. These guarantees are designed to limit the economic risks of cyberattacks, and shift responsibility to the vendor. They typically fill the gaps that insurance companies leave.
Nevertheless, not all warranties for cybersecurity are the same. Certain warranties come with strict terms which could cost your business much money if you don’t read the fine terms. For instance, many warranties for technology restrict payment by the amount that the provider spent on their solution. This is not a great idea because the value of a single record in Cohesity FortKnox may be more than the license costs paid to a technology vendor.
This is a major warning because the cost of lost employee productivity could be much https://www.toptechno24.com/how-to-connect-your-nintendo-switch-to-the-tv more expensive than the total amount of time that the software was used during that period. This is a red flag because the price of lost productivity of employees could be greater than the time they spent using the software over that period. By incorporating representations and warranties that are focused on the legal processing of data to the most distant division of a company can reduce the risk of costly M&A deals.
