Does Your Insurance Protect Against Data Loss?

Does Your Insurance Protect Against Data Loss?

data loss insurance

Recovering data can be an expensive prospect, which is why many businesses are in the market for a way to offset that expense. While some insurance policies offer some compensation for data recovery, it is often a grey area where you may end up without the coverage you need. This is why data loss insurance is vital for businesses, large and small.

If you have business insurance, you should speak with your provider to determine whether data loss is protected. Many of the modern versions of this insurance do not protect or cover against claims for data loss.

When it comes to rental or homeowner’s insurance, many do not cover data recovery. Some recover things like photos or videos, but that varies by the company and policy. The way the data was lost can affect the result. For instance, a computer that is demolished in a fire or floor might be more likely to be covered.

Electronic data loss insurance is the best coverage option, especially for businesses. This type of policy is explicitly created for companies that use data. That means that data loss is nearly always covered. Do be sure to find out what exclusions are listed, just in case that sways you to choose a different policy.