Coverage for Electronic Data

Business owners understand the importance of protecting their assets from peril. Dealing with property damages, liability claims and workers’ injuries can be devastating to a company if it doesn’t have a comprehensive insurance package. Data loss may be overlooked when developing a full-coverage plan, however.

What Type of Insurance Protects Against Data Loss?

If computers are destroyed during a catastrophe, property insurance will replace the hardware. If data is lost, however, it won’t be covered under your basic property insurance policy. Electronic data insurance will pay to restore or replace the valuable data that was lost.

What Other Protection Will Electronic Data Coverage Provide?

If you experience data loss caused by a fire, it can affect your daily operations and productivity. Data loss insurance can include a clause for interruption of operations. This plan pays for lost income and business expenses while your data is recovered.

In addition to the losses caused by fires, other perils are covered under a comprehensive electronic data insurance plan, including:

  • Temperature or humidity issues that cause electronic damage
  • Electrical disturbances, such as a short circuit
  • Mechanical breakdown
  • Computer viruses and computer hacking

Utility service interruptions are not typically covered under a data loss plan, but can be added to the basic package.

Talk with your insurance agent about data loss protection for your business assets.