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.
Coverage Guides Related to Business Insurance
Sources for Business Insurance Answers
- Crime Terms and Conditions. The Travelers Companies, Inc.; Insuring Agreements A.1 Employee Theft, A.3 Employee Theft of Client Property, B Forgery or Alteration, F Computer Fraud, G Funds Transfer Fraud, PDF pp.1–5; definitions E and AA, pp.7 and 10; exclusions IV.C–H, pp.14–15. Accessed 2026-09-25.
- Cyber Insurance. Federal Trade Commission; First-Party Coverage; Third-Party Coverage; What Should Your Cyber Insurance Policy Cover. Accessed 2026-09-25.