It’s no surprise that more distributors provide buyers the latest warranty which is the cybersecurity assurance. Data loss is estimated to cost businesses $265 billion in 2031. These guarantees are designed to limit the financial risk of cyberattacks, and transfer liability to the seller. They typically fill the gaps left by insurance.

However, not all Home Page warranties for cybersecurity are the same. Some warranties have rigid conditions that can cost your company a lot of money if you don’t study the fine print. The majority of warranties on technology, for example that limit payments based on how much the vendor has invested in their solution. This isn’t a good idea since the value of a single entry in your Cohesity FortKnox might be much more than the total amount paid for licenses with a specific technology provider.

This is a warning because the cost of losing productivity from employees could be higher than the total amount of time that the software was used during that period. This is a red flag, since the cost of loss of productivity by employees could be much higher than the time they spent using the software over that period. Incorporating representations and warranties that concentrate on the legal processing of data, even to the smallest division of a company can lower the risk of costly losses in M&A deals.