What Insurance Covers Business Data Loss?
Cyber insurance may pay to investigate and recover electronic data after a covered incident; some crime forms also cover narrowly defined restoration expenses.
FTC guidance lists forensic investigation and recovery or replacement of lost or stolen data as possible cyber expenses. A sample crime form separately covers certain costs to restore programs or electronic data damaged by a defined computer violation, subject to conditions such as whether backups can reproduce the data.
Ask what causes of loss trigger recovery coverage: malicious encryption, accidental deletion, hardware failure, and vendor outages may receive different treatment. Confirm the covered recovery costs and whether backups affect eligibility.
