https://www.toptechno24.com/what-should-you-know-about-amazons-digital-currency
A warranty is a guarantee from a seller or a manufacturer that the product purchased is free of defects or imperfections for a specific length of time. In the case of technology M&A, warranties are often used to manage risks related to cybersecurity and data availability.
With ransomware moves required to strike a company every 2 seconds and predicted to cost businesses $265 billion by 2031, it’s no surprise that more distributors are offering their customers a brand new type of warranty: a data safety warranty. These guarantees limit the financial risk that are associated with cyberattacks by transferring the legal responsibility to the seller. They are usually offered as an addition to cybersecurity insurance to fill in gaps in coverage that may not be sufficient.
The actual details of a security assurance vary significantly, but they typically include shortage of business revenue as well as additional expenses incurred, and reputational damage caused by an incident. They may also contain policies meant for legal responsibility, that covers the cost of letting people affected by an attack to be identified as as any fines or charges incurred from lawsuits that could be filed.
However, while the basic concept behind a data safety assurance is good, many of them have serious shortcomings. Consider the case of Rubrik which provides a «Recovery Incident Warranty.» This warranty will pay for what they call «Recovery Incident Costs.» But this doesn’t mean your employees are being paid for their time spent in a recovery situation. Rubrik will only pay if they have receipts for the expenses. This is a red flag.