Electronic Data Processing

Electronic Data Processing (EDP) coverage is when you buy insurance for all electrical and magnetic damage, mechanical breakdown and can include temperature and humidity changes as well. There are few businesses that do not have electronic data processing equipment.

This coverage often carries a higher deductible so be aware of what your deductible is on your policy. You can often get your in-house software reconstructed under this policy as well. There is a stated limit of amount so be aware of what your needs will be including the reconstruction.

If you have had a building damage claim and now the building is completed but you are not ready with the computer systems then you might also have a business interruption-type claim. Most EDP policies will cover income loss or extra expense due to the loss the equipment, programs and data.

You need to be in control of your business insurance. Look over the coverage you have for your EDP and if this is important to the on-going operation and profitability of your business then make sure you have purchased a package with high enough limits and not too high a deductible.