Does Cyber Insurance Cover Data Recovery?

Data-recovery coverage generally concerns reasonable costs to restore or replace lost or damaged information after an insured event. The FTC lists recovery and replacement of lost or stolen data as a typical first-party cost, and Chubb describes digital-data recovery for data or software under its product. The grant may not include every cost of rebuilding a database, recreating information manually, or restoring a system after an excluded hardware failure.

Check the coverage trigger and the policy’s definitions of data, restoration, and computer system. Find any sublimit and retention, and see whether the policy requires backups, forensic verification, or use of an approved vendor. Ask if software licenses, data recreation, cloud recovery, and costs incurred before insurer approval qualify. Maintain backup records and contact the response hotline promptly so that recovery work follows the policy’s notice and consent conditions.