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 your professional service company.
Over the weekend someone struck a light pole, 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 server or hard drives. You choose to replace your server anyway.
The cost to replace the server plus pay for the work done is about $12,000. Because there’s no actual physical damage other than to reinstall the operating system, this is not 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 on your coverages. West Bend does offer some coverage options that would pay to restore, replace or reproduce lost fields or codes on lost or damaged data records. There are multiple separate coverages you could add that could potentially provide coverage for this loss. It’s important for you to discuss all of your options with your independent agent.