ARI Blog: Article

Why Does an Restoration Contractor Need Electronic Data Protection Insurance?


Why Does a Restoration Contractor Need Electronic Data Protection Insurance?

What Does Electronic Data Loss Insurance Cover?

1. Lost or damaged electronic data

As it is commonly known, EDP coverage provides insurance to replace or restore your electronic data that is lost as a result of a covered claim. For example, if fire to your building destroys your computers, then your standard property policy would only pay to replace the hardware. EDP would pay to return 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 have any liability coverage. So if an electronic data loss incurs any liability to a third party, 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 errors 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 result from 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 highly 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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