A technological mishap can cost you more than you imagine
If you’re like most business owners, you’ve made sure that you have the appropriate insurance to cover your company in the event of an emergency or an unexpected disaster. But today, when business as usual includes using technology to conduct most of the day-to-day operations, your insurance needs may go beyond the typical commercial liability coverage. With that in mind, here’s a look at what Electronic Data Processing Coverage is and how to determine if your organization needs it.
What is Electronic Data Processing Coverage?
While your commercial liability insurance will cover damage and loss of your computers and other electronic equipment, most general policies do not provide coverage for loss of data and media. So, for example, imagine what would happen if your company computers were infected with a virus or were damaged by a power surge that caused you to lose all your records. While your regular business policy would replace the actual computer equipment, it would not cover the loss of data. That’s where EDP Insurance comes into play.
Electronic Data Processing Insurance was created to cover the unique risks associated with computer operations. There are usually three components to this kind of coverage, including:
Electronic Data Processing Equipment: Coverage for the computer terminals, monitors, laptops, and any other computer equipment
Electronic Data Processing Media: Coverage for discs, disk drivers, magnetic tapes, and anything that information is stored on
Electronic Data Processing Data: Coverage for programs, data, and any other information stored on the media
What Perils Are Covered?
EDP Insurance will cover the basic perils like fire, theft, or damage caused by a storm but also provides coverage that is more specific to the unique issues related to electronic processing, including:
• Temperature extremes and humidity changes
• Electrical issues like short circuits and power surges
• Mechanical breakdown
• Faulty or defective design or workmanship
• Off-premises utility service interruption
• Criminal activity committed by employees or outsiders
Does your company need EDP coverage?
In today’s digital universe, it’s hard to imagine a company that doesn’t use computers to run its business. If your organization has one computer, several, or a network of dozens, or your employees use laptops to conduct any business, EDP insurance is highly recommended. It doesn’t matter if you’re storing customer information, processing orders or creating marketing campaigns—or pretty much anything in between. This type of policy will ensure that in the event of loss or downtime, your hardware, software and data will be covered.
What do you stand to lose?
We’ve all experienced an unforeseen complication when it comes to computers. Whether the system went down, the network got a virus, or a power surge caused you to lose data, when you’re dealing with technology and something goes wrong, it could endanger your business and most certainly your bottom line. Your company’s finances will suffer when there’s an interruption or you lose valuable documents or customer information. With EDP insurance, you can make sure that you’ll have the coverage you need to protect your organization.
Protecting your livelihood in today’s world sometimes goes beyond a general commercial liability policy. If you’re interested in finding out more about Electronic Data Processing Insurance or you’re unsure if your company needs it, call us today at 305-648-7070 or fill out our online contact form and we’ll be happy to discuss your options and what products may be appropriate for you.