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

But, just like other type of warranty there are different cybersecurity warranties. Not all are made equal. Some experience rigid stipulations that could lead to your business paying a high cost for information returning, particularly when you’re not aware of the details. The majority of technology warranties, for example are based on how much the vendor has invested in their product. This isn’t a good thing as the value of a single record in Cohesity FortKnox may be more than the amount of license fees paid to a technology company.

This is a huge red flag because the cost of losing productivity from employees could be higher than the total amount of time that the software was in use during that period. This is a red flag because the cost of lost productivity of employees could be significantly higher than the time spent using https://www.toptechno24.com/intensive-complex-performance-with-virtual-data-room the software in that period. By incorporating representations and warranties that concentrate on the legal processing of data down to the smallest department of a company could reduce the risk of costly M&A deals.