The American company CrowdStrike announced yesterday a new warranty program for its customers, offering coverage up to 1 million dollars (provided it is protected by the company's endpoint protection software), in case any of them suffers a data breach.
The warranty will be offered free of charge to any customer who purchases a license for CrowdStrike Falcon EPP Complete, the company's flagship security software.
CrowdStrike reports that customers can use the warranty to cover certain breach remediation costs, such as legal advice, forensic services, notification expenses, etc.
The terms will not be negotiable and will only apply to future security incidents.
“Other businesses have long offered guarantees to assure customers that the products they purchase will work as advertised”, said CrowdStrike yesterday. “However, this has not happened for cybersecurity”.
The company claims that it is the first to offer such a guarantee for data breaches to its customers. This may apply to data breaches but does not apply to all cases of security breaches.
In 2016, SentinelOne offered a similar cyber insurance program, but for ransomware. Through its “Ransomware Cyber Guarantee,” SentinelOne offered to pay a portion of the ransom demanded by hackers to decrypt locked data if one of its customers was attacked while protected by the company’s endpoint security software. That insurance program was eventually discontinued, but this new guarantee offering from CrowdStrike shows that cyber risks are on the rise and that the term “security” will be just as important in the physical as it is in the digital world.
