Will Insurance Pay for your Data Recovery?

You may not have to pay out-of-pocket for a data recovery. Some insurance policies will pay for part or all of the cost of a professional data recovery service, but data loss coverage falls into a grey area on many policies. Eric’s Computer Services will speak directly to your insurance agent to see if coverage is available on your policy to secure you the best outcome as part of our data recovery diagnostic and while working on your data recovery case.

Just for example Liberty Mutual’s press office states that “data recovery would be paid for under covered perils, such as a storm, power surge, or break-in”. State Farm and Allstate have a polices for data loss for businesses. Businesses have greater coverage for data recoveries, but it is of course subject to whatever deductible is on the policy. Some homeowner’s and renters insurance have coverage, and many business insurance plans include coverage.

The nature of the data loss also may play a role in the insurance claim decision, especially if you can obtain documentation from the data recovery company that explains the cause of data loss. That is why working with a data recovery company is key. I am able to successfully handle insurance claims regularly due to the communication and cooperation between the customer, insurance company and Eric’s Computer Services.

Homeowner’s and Renters Insurance

Some policies include coverage for intellectual property such as loss of intellectual property, loss of important papers, loss of personal documents, loss of personal papers, loss of tax returns or loss of family photos. When calling your insurance agent be sure to ask them whether your personal papers or your intellectual property is kept under your policy.

Business Insurance

Business Insurance policies will often pay for data recovery and may include the following benefits in addition to loss or documents or loss of intellectual property.

If you are unable to handle day-to-day tasks due to data loss – for instance, if a computer or server goes down or if you cannot provide a customer with services – you may be able to submit a claim as an Interruption of Business which reimburses a business for loss of profits during a forced full or partial closing. In that case even if the data recovery

Business polices sometimes expand the offers of the homeowners and renters insurance Intellectual Property Coverage which provides specialized insurance coverage. Many insurance polices cover small and large scale businesses and their policies have already taken steps to protect intellectual property data loss.

Electronic Data Loss coverage is the best coverage for businesses. Electronic data loss insurance is configured specifically for businesses that rely on data, and it almost always covers unexpected data loss. Often coverage included data that is destroyed or damaged by virus or any harmful code, the electronic data loss coverage comes as a great rescue to pay the cost. Business polices often safeguard electronic data damaged depending on the policy, causes can vary like human error, fire or virus.

Some policies may even had a data recovery rider for data loss, and paying for the subsequent data recovery.  New provisions in more advanced polices for businesses cover cyber attacks.

What do insurance polices not cover under data recovery?

The following are typically not covered and you should check your policy’s terms and conditions or speak to an agent about the following:

      • Normal wear and tear of drive or media
      • Loss of data outside a period covered in policy
      • Intentional equipment or electronic media damage due to a willful act
      • Problem with or loss of a software program
      • Loss of device or data due to earthquake or an act of nature
      • Loss due to an electrical problem, other than a power surge
      • Inadvertently deleting files

In any case, the easiest and most reliable insurance in the event of data loss is backup. There is no guarantee that recovery will be successful if your device is too damaged from a fire, flood, etc. Not to mention, a theft would leave you nothing to recover from. Be sure to have a data backup in place, and always be aware of your full insurance.

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