Data loss is a problem for businesses every two seconds and projected to cost businesses $265 billion by 2031 It’s no wonder that more distributors are offering consumers a new kind of warranty called the cybersecurity warranty. These warranties are designed to reduce the financial risk related to cyberattacks, and are often a complement to insurance. They fill in the gaps that insurance doesn’t cover.
However these warranties aren’t made in the same way. Certain warranties come with strict terms that can cost companies significant amount of money in order to retrieve information in the event of a cyber attack occurs. These can include:
This kind of warranty can be included in the technology M&A agreement to ensure that the buyer is secured from security threats and that the vendor takes appropriate steps to avoid future attacks. These new warranties, in addition to the usual representations and warranty clauses in an asset purchase agreement or stock purchase contract can be negotiated in a way that they cover privacy, data https://www.toptechno24.com/how-to-connect-your-nintendo-switch-to-the-tv protection and other pertinent issues specific to the deal.
A typical warranty will cover the cost to repair or replace equipment, as well as IT labor, forensics and also compensation for people affected by a breach. Certain warranties also cover legal costs that could arise from lawsuits. A more comprehensive version could also cover lost revenue and the cost of reprogramming the software, and the cost to restore reputational damage caused by an incident involving security.