When data breaches occur, often, the problem can be traced down to third-parties in a supply chain, or basic, lax security processes in IT environments.
The most common response from victim companies to impacted customers is to sign up for credit monitoring services, and no or little compensation is on offer. The firm itself is then left to damage control, forensics, and picking up the pieces after a successful data breach.
In light of the extensive financial damage cyberattacks can cause, the case for cyberinsurance has never been stronger.
CrowdStrike is confident enough in its cybersecurity protections solutions that the company is willing to back its portfolio with a financial promise -- should a data breach occur, you're covered.
On Tuesday, the cybersecurity firm announced the launch of a warranty worth up to $1 million should customers of its endpoint security software experience a successful data breach caused by exploits, ransomware, zero-day vulnerabilities, and more.
"Other industries have long offered product warranties to assure customers that the products they purchase will function as advertised," CrowdStrike says. "This has not been the case in cybersecurity, where customers generally have little recourse when security products fail to protect them."
Customers of the Falcon EPP Complete subscription software are eligible for the free warranty -- however, the warranty on offer is dependent on the value of the subscription.
CrowdStrike's coverage can be utilized to cover the costs of responding to a data breach, including incident response, legal fees, notification, credit monitoring, forensic investigation and public communications expenses.
The company says that it has purchased an insurance policy from American International Group (AIG) to protect its own financial risk in offering the warranty.
"With cybersecurity breaches dominating the headlines every week, it's clear the industry can benefit from more accountability," said George Kurtz, CrowdStrike co-founder, and CEO. "Unlike other vendors, CrowdStrike fully stands behind the breach protection capabilities of the CrowdStrike Falcon platform and the CrowdStrike EPP Complete solution, which is why we are happy to announce the warranty offering starting today."
The warranty is offered on a year-to-year basis. However, as it is based on CrowdStrike's insurance policy, it is a "take it or leave it" proposal -- and pre-existing security incidents are not covered.
There are not many companies which offer financial guarantees as a hook for using their endpoint security solutions, but if such warranties can help victims cope with data breaches as they occur, it can only be of benefit.