Your SMB Insurance Policy May Cover Data Recovery

All types of businesses depend on data. Unfortunately, there are many ways to lose data in the workplace, from a human error to a hard drive crash. Data loss typically becomes a serious problem — losing data means losing time and money to recreate files that are essential to your business or even business closure. Even if you have a data backup, it can be outdated or corrupted. Depending on the data size, recovering files from an online backup might take weeks causing company downtime. A professional data recovery company such as ACE Data Recovery can retrieve all files in a timely manner. Depending on a failure type, data recovery can be less or more expensive. But in most cases it is the only viable option for Small and Medium Businesses (SMB) as data loss usually has a lasting impact on a company’s financial health.

The good news is that if you experience data loss, your business insurance policy may cover all or part of the cost. However, before you file a claim, please check what coverage you have and how to convey your data loss to an insurance company.

Business insurance coverage comes in many forms and options with no two business insurance policies looking the same. That being said, many business insurance policies may include one or more of the following coverages:

Interruption of Business Coverage

Business interruption insurance offers coverage for any loss of income while property (including your computer data) is being repaired or replaced. Any forced closing of a business as a result of a covered property claim is considered an interruption of business, and warrants the implementation of the insurance policy. Therefore, business interruption insurance reimburses a business for loss of profits during a forced full or partial closing of their operational facilities.

Intellectual Property Coverage

Specialized insurance coverage for intellectual property assets is becoming a more important need for many businesses. Businesses, large and small, have started to take steps to protect intellectual property, and, accordingly, a market has developed specifically for insurance for intellectual property assets.

Electronic Data Loss Coverage

The third type of business insurance coverage is Electronic Data Loss Coverage. Electronic Data Loss Coverage pays the cost to restore or replace data damaged or destroyed as a result of data loss causes named in your policy. They often include a computer virus or harmful code. Check the specifics of your policy to make sure your cause is not explicitly excluded. Electronic Data Loss coverage is the best coverage for businesses. Electronic data loss insurance is set up specifically for businesses that rely on data, and it usually covers unexpected data loss. If you have any of the above mentioned coverages, make sure you frame your data loss around one or more of them.

We don’t recommend insurance policies offered by data recovery companies and hard drive manufacturers as they come with a major conflict of interest. A data recovery provider might simply call the case unrecoverable since each recovery has its limited budget and it’s usually much easier for these insurance providers to refund the cost of the policy than to try getting data back from a severely damaged hard drive. All in all, it’s always better to do your homework and personally choose a reputable data recovery company with the necessary know-how and years of experience in data recovery.

You may only get one chance to recover your company’s critical data. If you are having issues with a RAID or other failed storage media with your business data, call ACE Data Recovery for a free consultation. We have the experience and custom hardware and software tools to succeed where others fail. We’re able to provide a diagnostic report and a quote to your insurance company, so they cover the cost of data recovery services.

About ACE Data Recovery:

ACE Data Recovery, the leader in enterprise data recovery, provides services to businesses who experience data loss due to hardware and software failures or natural disasters. The company has recovered data from all types of media including HDD, SSD, RAID, SAN, NAS, and tapes since 1981. For additional information visit or call 877-304-7189.