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Data Recovery and Insurance

You data is not only personal, but valuable, like your child’s pictures and video from the time when he was 6 months or your dissertation for a PhD.  Losing your data is always a stress full event. However, you may not always have to pay out of pocket for the recovery. Every policy is different this article is and this is more of a general guide we hope is helpful when talking to your insurance company. There are two types of policies that can cover data recovery services.

Homeowner's Insurance

Most policies will not cover data recovery per se. Any coverage for data recovery generally falls under the category “Loss of Intellectual Property” or “Loss of Personal Documents” or “Loss of Family Photos”. When you call your insurance agent and ask them whether your personal papers or your intellectual property is kept under your policy. Try to avoid focusing the conversation on ‘computer’ or ‘hard drive’

Business Insurance

Business Insurance coverage is available in many shapes and sizes. Business Insurance policies can include the following benefits:

  • Interruption of Business Coverage: Provides coverage for the loss of income or loss of profits during the temporary, partial or forced full closure of the operational system.
  • Intellectual Property Coverage: Provides specialized insurance coverage for various intellectual properties. Small and large scale businesses have already taken steps to protect intellectual property.  
  • Electronic Data Loss Coverage: When a particular data is destroyed or damaged by virus or any harmful code, the electronic data loss coverage comes as a great rescue to pay the cost.
  •  Data Loss: At times when electronic data being the blood line of the business, you never know loosing it may cause potential damage. Such data should be safeguarded. The electronic data damaged or lost is covered by Data loss coverage, by which the data, as per in your policy, can either be restored or replaced. The causes can be multiple like human error, fire or virus.

What they almost never cover

 

It is crucial to check what’s in your bag when you are buying an insurance policy. Usually the following are not covered and you should check your policy’s terms and conditions for the details,

  • Loss of software programs
  • Loss of device or data due to earthquake
  • Loss due to improper storage, design fault or electrical supply other than a power surge
  • Normal wear and tear of device;
  • Loss post the period covered in policy
  • Loss caused through the erasing data not caused by insured accidental damage
  • Loss of equipment or electronic media due to a willful act by you
  • Loss caused by temperature variation, pollution, heat or by act of nature

The above mentioned points are examples of what is usually not covered and one should always go through them.

Since everyday we create and store data on electronic devices and have vital impact on our personal and professional life, it is equally vital to safeguard that data. Nothing is better than a proper backup strategy.
 

By Chris Hubbell