Electronic Data Processing (EDP) insurance is designed to cover the unique risks associated with computer exposures and typically includes three core areas of coverage;

• Equipment (Personal computers, servers, terminals, monitors, laptops, and other hardware).
• Media (Disk drives, disks, magnetic tapes, and other areas where data is stored in your equipment).
• Data (Software applications that store your business data and facts, concepts, programs, and additional expenses associated with data recovery).

The Equipment and Media sections are specialized property coverages that address the unique exposures faced compared to inventory or business furnishings. Equipment and Media coverage can be written on a replacement cost or actual cash value basis. You can also insure your equipment on a scheduled basis, in which all equipment is listed on the policy with a limit per item, or on a blanket basis. EDP coverage carries from insurer to insurer, but when possible, it is wise to seek a policy that offers a blanket limit with replacement cost and without a coinsurance clause.

The risks associated with data exposures are significant to consider since data, when damaged or destroyed, is often difficult and expensive to replace or retrieve. Considering that data insurance coverage is not standardized, different insurers define their range in the insurance marketplace; carriers may limit data differently and offer different forms of coverage. A close examination of the terms of your policy is necessary to determine the adequacy of your data coverage.

In addition to protecting your computer equipment and data from physical damage and other risks, businesses today are increasingly faced with cyber liability exposures that require specialized coverage.