The purpose of this article is to educate anyone who needs data recovered whether or not insurance will pay for data recovery service. We encourage everyone to read the article in its entirety in order to know what steps to take if you are looking to file an insurance claim for data recovery.
Will insurance pay for data recovery services?
Whether you’re a business or an individual, there is a good chance that you may be eligible to file a claim with your insurance agent for data recovery services. Data recovery is an unexpected cost we may face at any moment.
Prior to calling your insurance agent
It is critical that you choose your words wisely when first speaking to your insurance agent. You should also ask for a copy of your policy and review it thoroughly. The majority of insurance companies that we’ve dealt with were able to cover the insured for data recovery. It is important that you do not specifically say “data recovery.” Examples of what is covered and was is not covered by your personal or business insurance is stated in the sections to follow.
What your insurance company may not cover
Insurance companies may not always cover data recovery services. Even if you see something below that is not in your policy, we always recommend you still contact your insurance agent. Keep in mind that some insurance companies may offer specific coverage for these events. You may find these scenarios below:
- Loss of data due to a natural disaster
- Normal wear and tear to device
- Improper usage of equipment by yourself or employees
- Any power failure other than a power surge
- Inadvertently deleting files
Business insurance policy for data recovery
“Data Recovery” may not be covered by your policy however if you are a business, data on the storage device may be qualified as intellectual property. This would include business documentation such as business plans, information pertaining to how the business is run, proprietary software, and tax returns.
If your policy covers interruption of business and lost profits you may be eligible to file a claim. This is true especially if your data contains future billings, software, documents or anything used for the business to operate.
Electronic data loss coverage is another policy you may take out in the event that data is damaged or destroyed. This will cover most data recovery events such as computer viruses or malware that infect your network or computer. We recommend you always check your policy and add this coverage especially if your business relies heavily on data in order to operate from day-to-day.
Personal insurance or home owners insurance for data recovery
Your hard drive is considered your property and if it is destroyed or damaged it may be covered under the loss of your personal property policy. If you lost family photos, tax returns, budgets for the household, then tell your agent this. Do not mention anything relating to your hard drive or computer.
Don't always take 'NO' for an answer
We understand data recovery can be an unexpected cost to you or your business. In some cases it could be very expensive, depending on the nature of the issue. We encourage you to speak to a supervisor of your insurance company if you were told no.
What if I already asked if data recovery is included under my current insurance policy?
If you’ve already asked your insurance company if “data recovery” is covered, they said no, and you have lost information such as tax returns, family photos, and important papers?