With data loss affecting an organization every two seconds, and projected to cost businesses $265 billion by 2031, it’s no wonder more distributors are offering buyers the most recent kind of warranty one of which is the cybersecurity warranty. These warranties are designed to mitigate the economic risks associated with cyberattacks and remove any liability that is transferred to the vendor, usually providing the gaps in insurance that may not be able to cover a loss.

But, just like other type of warranty, not all cybersecurity warranties are alike. Certain warranties have strict conditions which could cost your business many dollars in the event that you don’t understand the fine terms. The majority of warranties for technology, like have a limit on the amount of money you pay based on how much the provider invested in their solution. This is not helpful since the value of one record in your Cohesity FortKnox might be much higher than the total amount paid for licenses with a specific technology vendor.

For instance, if you’re an existing Rubrik customer and are not able to recover your data due to a ransomware attack their warranty will cover for what they call “Recovery Incident Expenses.” However they will require receipts for the amount of hours employees devote to the recovery process. This is a big alarm because the price of lost productivity by employees could be much more costly than the total amount of time that the software was used for that period. This is why incorporating representations and warranties that focus on the lawful processing of data all the way down to the smallest part check this site out of a business could help to reduce risk that is costly when it comes to M&A transactions.