By Joseph S. Harrington, CPCU, ARP
Young people starting out in insurance today might be puzzled when they first encounter a coverage designed to restore “valuable papers and records” that have been damaged. Those who have grown up in an era of online information are likely to ask, “If it’s a valuable record, why is it on paper?”
They would assume that any record worth keeping resides on a network or in “the Cloud” and therefore be easy to retrieve. Indeed, they’d find it hard to imagine creating a document without an electronic trail.
Although the medium in which they are kept has evolved frompaper to electronic, valuable records remain intrinsic to every organization’s existence. But has the insurance that protects them— traditionally known as valuable papers and records coverage— remained as relevant?
If so, how does it relate tomore recently developed electronic data processing coverage? What happens when there is crossover between hard copy and electronic data? Where does today’s cyber insurance come into play?
These questions andmore about this timely subject are discussed in this issue of Adjusting Today by insurance author Joseph S. Harrington, CPCU, ARP.
Enhancing his main article is a chart comparing how three types of losses to data and records might be addressed by four potentially applicable coverages.
Rounding out our issue is a sidebar describing how the changing nature of risk has also impacted a companion coverage—accounts receivable insurance.
It is an enlightening package of information for business owners, insurance agents, risk managers and all who want and need to knowmore about this crucial type of protection.
Sheila E. Salvatore Editor