Are Your Computers, Media, and Data Insured Or Do You Just Think They Are?


Today everything runs via computers. It makes business faster, easier, and more efficient. In fact, the younger generation knows no other way. It’s easy to take computers, data, programs, and media for granted these days. You may think nothing can happen to them, but that’s not the case. In most cases, property policies may provide limited coverage for computer equipment but no coverage for data, programs, or media on the computers, or losses due to hacking or a computer virus. Are your computers, media, and data insured or do you just think they are?

What is EDP Insurance?

Electronic Data Processing (EDP) insurance is insurance specifically tailored to cover losses associated with computer operations. The technology used to run your business is the lifeline that keeps you in business, successful, and generating income. If something should happen to it, imagine the losses you will face. That’s why it is important to protect your investment. You may think you’re protected, but the average insurance policy does not protect against these types of losses.

Some Itty-Bitty Details…

Understanding EDP insurance isn’t always easy, and each insurance company has its own terms for coverage. For instance, some policies may include a coinsurance clause. This means that they require you to insure the equipment and media for a certain percentage of its total value. Typical coinsurance clauses require that 80, 90 or 100 percent of the total value be insured. If the limit is determined to be inadequate at the time of loss, a claim penalty can be imposed.

How and What

There are also different ways to insure your data processing equipment including either on a replacement cost or actual cash value basis, on a scheduled basis, or on a blanket basis. In the event of a loss, your claim payments will be affected based on which type of coverage you choose. If it sounds confusing it can be. But Jeff can walk you through it to make sure you choose the coverage that is right for your business.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more, or to get a free quotecall our Carrollton office today at 972-492-8500.