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Experts: SentinelOne ransomware guarantee no replacement for cyberinsurance

Maria Korolov | Aug. 2, 2016
Earlier this week, SentinelOne announced that it will reimburse customers for up to $1 million if they are hit by a ransomware attack, but some experts say that this is a marketing gimmick and no replacement for a solid cyberinsurance policy

SentinelOne's doesn't cover this, he said.

"The guarantee seems like a boastful testament to the quality of their software, but in reality they aren’t taking any real risks," he said.

Cyberinsurance typically offers much better coverage than does the SentinelOne guarantee.

"The cost of a breach can far surpass the ransom amount being requested," said Jerry Irvine, CIO at Prescient Solutions. "Additionally, the limit of the damage is not just your encrypted files. Hackers who have breached your systems to encrypt them also have the ability to obtain all personally identifiable information and access your other accounts and systems, and even steal your identity."

Cyberinsurance also covers other types of attacks, not just ransomware.

"Ransomware is on the rise, but it's certainly not, on its own, a million-dollar problem, but rather an important component of a continuum of threats,” said Kevin O’Brien, co-founder and CEO at cloud security vendor GreatHorn.

Every company should have a decent cyber insurance policy as part of its risk management plan, said Yong-Gon Chon, CEO at Cyber Risk Management LLC.

"A ransomware guarantee from a product vendor is more confidence marketing than insurance," he said.

In addition, companies looking to protect themselves against ransomware should also have good data backups, and process restoring from those backups on a regular basis.

KnowBe4 matches SentinelOne, and raises

SentinelOne isn't the only security vendor offering a ransomware guanratee.

KnowBe4 has been offering a similar guarantee since 2014, and at no extra cost to the customer.

The SentinelOne offer is a copycat, said KnowBe4 CEO Stu Sjouwerman.

"It would have been worth it if it was part of the actual sales price, the way KnowBe4 does it," he added. "If you add 5 bucks per user, it's just another form of cyber-insurance."

On Friday, KnowBe4 raised the amount of its guarantee from $500 to $1,000 per infected device.

"There has to be a cap, as currently the bad guys are negotiating skyrocketing ransoms," Sjouwerman said.

For years, security vendors have been selling product that promise effective protection, with no repercussions is they don't deliver, said Tomer Weingarten, CEO at SentinelOne.

"We’d like to change the industry by having multiple vendors back their products," he said. "Imagine if a customer had endpoint security, firewalls, email security and web security, all backed by a guarantee. We are in conversations with several vendors and have publicly offered to share the warranty framework with any vendor confident in their product’s detection."

 

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