Digital Asset Restoration coverage is a key element of cyber insurance policies that helps businesses recover from the loss, corruption, or destruction of critical data due to a cyber event. This coverage is designed to reimburse the costs associated with restoring or recreating digital assets such as customer records, financial data, software programs, databases, and proprietary information that are compromised by malware, ransomware, or accidental deletion.
In the event of a cyberattack, restoring digital assets can be time-consuming, technically complex, and expensive. This coverage typically includes expenses related to IT forensics, data recovery specialists, and software replacement or repair. It may also cover the cost of reprogramming systems and restoring configurations to ensure operations return to normal as quickly as possible.
Digital Asset Restoration coverage is particularly valuable for companies that depend heavily on digital operations and store sensitive or irreplaceable data. Coverage details—such as what qualifies as a digital asset, coverage limits, and exclusions—can vary by insurer, making it important to understand policy specifics.
By protecting against the high costs of recovering essential data, Digital Asset Restoration coverage helps businesses minimize downtime, maintain continuity, and reduce the long-term impact of cyber incidents on their operations and reputation.
Example: Marketing Agency Digital Asset Restoration
Scenario:
A marketing agency falls victim to a cyberattack in which a malware infection corrupts several key databases, including client records, creative assets, and project files. Despite having backups, the malware had gone undetected for weeks, meaning the backups were also compromised. The agency is unable to access or recover months of work, delaying deliverables and disrupting client campaigns.
Response and Coverage:
The agency files a claim under its cyber insurance policy, which includes Digital Asset Restoration coverage. The insurer deploys a team of IT forensic and data recovery experts to assess the damage and begin the restoration process. The team works to isolate clean versions of files, reconstruct damaged data, and reinstall critical software systems. In some cases, content had to be manually recreated.
Expenses Covered:
The insurer reimburses the agency for the cost of hiring data recovery specialists, purchasing new software licenses, and the labor involved in re-creating corrupted digital assets. The total covered cost amounts to $85,000.
Outcome:
Thanks to the Digital Asset Restoration coverage, the agency is able to recover critical data, resume operations quickly, and minimize further delays for their clients—protecting both their financial health and professional reputation.
