ARI Blog: Article

Why Does an Restoration Contractor Need Electronic Data Protection Insurance?


Why Does an Restoration Contractor Need Electronic Data Protection Insurance?ve you and your staff hours of headaches trying to restore the electronic data that was lost.

What Does Electronic Data Loss Insurance Cover?

1. Lost or damaged electronic data

EDP coverage as it is commonly known provides insurance to replace or restore your electronic data that is lost as a result of a covered claim. For example, if a fire to your building destroys your computers, then your standard property policy would only pay to replace the hardware. EDP would pay to replace the data stored on those computers.

2. Interruption of Computer Operations

Data loss can severely impact a business. So if you have Interruption of Computer Operations included on your policy, then the insurance company will provide coverage for loss of actual income and extra expenses if you cannot operate your business due to the data loss.

What Doesn’t Electronic Data Loss Insurance Cover:

1. Your liability due to data loss (not a third party)

Most electronic data protection policies do not any liability coverage. So if an electronic data loss incurs any liability to a third party, then you most likely do not have any coverage.

2. Your mistakes

EDP insurance typically will not cover any losses due to mistakes in processing electronic data, or mistakes made in the design, implementation or support of your computer systems or networks, unless those mistakes result in a covered claim that subsequently destroys the data.

3. Employee actions

EDP insurance usually will not provide any coverage for losses to electronic data if those losses are a result of your employees’ actions, whether intentional or not.

For restoration contractors this coverage can be invaluable. The cost to restore electronic data like drawings, bids, etc. can be extremely cumbersome and expensive.

If you are interested in getting a quote for the cost of Electronic Data Protection, please don’t hesitate to give our office a call.

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