Understanding your insurance coverage can be confusing and complicated. When going over your options with your agent, don’t be scared to ask questions, so you can make an informed decision that the insurance coverage you’re purchasing is right for you. Here’s an example of how insurance could apply.
Over the weekend someone struck a light pole, and because of this, power was lost to your building. During this time, your company servers went out and some data was lost. There are multiple ways to try and fix this issue, but with the help of your company’s IT firm, you determine the best course of action is to get a new physical server and migrate the current software to a known, reliable platform in efforts to restore lost data. Reporting and testing are done, and it’s determined there was no physical damage to the original server or hard drives. You choose to replace your server anyway.
The costs to replace the server and pay for the work done are about $12,000. Because there’s no actual physical damage other than the need to reinstall the operating system, this isn’t covered under your current policy.
Always make sure you ask questions and know what you’re purchasing so if a loss does occur you aren’t surprised or confused by your coverages. West Bend does offer some coverage options you could add that would pay to restore, replace, or reproduce lost fields or codes on lost or damaged data records. It’s important for you to discuss all your options with your independent agent.