---
title: "Does Cyber Insurance Cover Lost Data?"
description: "Cyber insurance may cover reasonable costs to restore data lost in a covered incident, but it may not pay the data’s commercial or intellectual-property value."
canonical: "https://spot.insure/insurance-faq/cyber/does-cyber-insurance-cover-lost-data"
page-type: "faq-question"
updated-at: "2026-09-25"
---

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# Does Cyber Insurance Cover Lost Data?

Cyber insurance may cover reasonable costs to restore data lost in a covered incident, but it may not pay the data’s commercial or intellectual-property value.

Cyber insurance may cover reasonable costs to restore data lost in a covered incident, but it may not pay the data’s commercial or intellectual-property value. These are different losses. FTC guidance identifies recovery or replacement of lost or stolen data as a typical cyber coverage area, while the Insurance Information Institute notes that lost revenue associated with intellectual-property theft may be outside standard cyber coverage. Neither establishes payment for every data asset.

Check whether the policy covers the specific cause of loss, such as a security event, accidental deletion, corruption, or system failure. Look at definitions of data and digital assets, valuation rules, exclusions for intellectual property, and any recovery sublimit. Ask whether the contract pays reasonable restoration expense or a broader economic value. Preserve backups and evidence, and confirm approval requirements before engaging a recovery vendor.

## Related Questions

- [Does Cyber Insurance Cover Data Breaches?](https://spot.insure/insurance-faq/cyber/does-cyber-insurance-cover-data-breaches)
- [Does Cyber Insurance Cover System Failure?](https://spot.insure/insurance-faq/cyber/does-cyber-insurance-cover-system-failure)
- [Does Cyber Insurance Cover Downtime?](https://spot.insure/insurance-faq/cyber/does-cyber-insurance-cover-downtime)
- [Does Cyber Insurance Cover Ransomware?](https://spot.insure/insurance-faq/cyber/does-cyber-insurance-cover-ransomware)

## Related Coverage

- [Cyber liability](https://spot.insure/coverage/cyber)

## Sources

1. [Cyber Insurance](https://www.ftc.gov/business-guidance/small-businesses/cybersecurity/cyber-insurance). Federal Trade Commission; What Should Your Cyber Insurance Policy Cover; First-Party Coverage; Third-Party Coverage. Accessed 2026-09-25.
2. [CyberEdge specimen policy](https://www.aig.com/content/dam/aig/america-canada/us/documents/business/cyber/cyberedge-wording-sample-specimen-form.pdf). AIG; General Terms §§4–6, PDF pp.3–6; Security and Privacy §§1–3, PDF pp.11, 14–18; Event Management §§1–2, PDF pp.19–20. Accessed 2026-09-25.
3. [Cyber insurance coverage & products](https://www.chubb.com/us-en/business-insurance/products/cyber-insurance/cyber-insurance-products.html). Chubb; Cyber insurance coverage; First party coverage; Third-party liability coverage; Cyber crime (by endorsement); Products and services. Accessed 2026-09-25.

More answers: [Cyber Insurance FAQ](https://spot.insure/insurance-faq/cyber).

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