Data loss is expected to cost businesses $265 billion by 2031. It’s not surprising that more distributors provide buyers the latest type of warranty, the cybersecurity warranty. Created to help mitigate the financial risk of cyberattacks and breaches They are typically an addition to cybersecurity insurance and help fill the gaps where insurance doesn’t offer security.
These warranties are not all the same. There are many that have strict terms and conditions that may keep companies paying the highest price for information retrieval in the case of cyber-attacks. These can include:
This kind of warranty can be included in a technology M&A agreement to ensure that the https://www.toptechno24.com/how-to-remove-the-avast-email-signature buyer is adequately protected from potential security threats and that the vendor takes steps to prevent future attacks. These new warranties are in addition to the usual representations and warranties clauses that are included in an asset purchase agreement or stock purchase contract can be negotiated so that they cover privacy, data protection, and other relevant concerns specific to the deal.
A typical warranty covers the cost to repair or replace hardware, the cost of forensics, IT labor, and also compensation for people affected by a breach. Certain warranties also cover legal costs resulting from possible lawsuits. A more comprehensive policy could also cover lost business revenues, the costs of reprogramming software and the cost to repair reputational damage caused by an incident of security.