3 Questions To Ask in Claims With Reported or Suspected Data Loss

When computer servers housed in a large underground facility suddenly shut down, the business that relied on them was brought to a standstill. The owner filed a commercial claim, counting on their carrier to deliver a swift and accurate resolution that would address both equipment damage and the possibility of data loss. 

The stakes were high in that incident and in most cases where businesses are impacted by data loss. According to a 2024 report from DataNumen, 93% of businesses that experience data loss for more than 10 days file for bankruptcy within a year. 

That potential looming risk highlights the importance of asking the right questions to resolve claims quickly and effectively. Find out what those questions are and how they were answered in the computer server claim. 

Because data servers can play a major role in keeping businesses up and running while protecting sensitive information, any potential losses should be thoroughly investigated.  

1. To What Degree Was Equipment Exposed to a Peril? 

Disasters like floods, fires, or even smaller scale events like leaks or water intrusion can not only cause external damage to devices but may also impact internal components and the critical data they store. If data isn’t backed up—or if external backups are also exposed to these perils—businesses risk significant data loss. However, if devices aren’t directly exposed to water, flames, or other perils, there’s still a strong chance that data can be recovered. 

The length of exposure is also a critical factor. Water can lead to corrosion or short-circuiting, so identifying water damage early and taking swift action is essential to salvaging data. Prolonged exposure to heat, moisture, or soot can further complicate recovery efforts. Bringing in an expert to assess the situation can provide clarity on the recovery options available. 

For the claim with the underground servers, the carrier contacted TechLoss Consulting & Restoration, part of Alpine Intel’s suite of services, to evaluate the extent of the damage and determine if data or any parts of the servers could be salvaged.

2. Are the Storage Chips Still Intact? 

Determining the integrity of storage chips on a motherboard or Solid-State Drive (SSD) is critical when assessing the potential for data recovery. This typically requires more than a visual inspection. While external damage such as burns, cracks, or corrosion may be evident, internal issues could go unnoticed without deconstructing the device. Carefully disassembling the hardware allows for a closer examination of the chips’ condition and any underlying damage to other critical components and often requires an expert to prevent further damage. 

Examining the integrity of SSDs is an important part of a data loss investigation. 

Beyond the physical state of the storage chips, it’s equally important to evaluate the integrity of the data they store. Power surges, for example, can cause file corruption that impacts accessibility. 

During their onsite inspection, TechLoss found that several of the servers’ SSDs had been affected by creep corrosion. This damage occurs when devices are exposed to corrosive environmental agents. The drives’ manufacturer had adopted a new, eco-friendly soldering process, but the materials used reacted poorly with the underground environment where the servers were housed, leading to the corrosion. 

3. What Is the Extent of the Loss? 

Experts can evaluate the answers to questions #1 and #2 in conjunction with other onsite testing and observations to answer: What is the extent of the loss? This includes both physical damage to business-critical equipment as well as the data they store. 

Take the claim involving the underground servers as an example. TechLoss discovered that creep corrosion affected only a portion of the servers. They ultimately recommended replacing 500 drives rather than the entire facility, significantly reducing the claim’s overall exposure. Fortunately, the insured had utilized a hard drive array, meaning data was distributed across multiple devices. As a result, no data was lost.  

However, in cases where data loss does occur, TechLoss experts are equipped to determine whether recovery is possible and, if so, extract the data onto any form of media. Their team can not only restore data affected by perils like water and smoke, but also equipment breakdowns, failed data arrays, viruses, and malicious employee actions. 

Backup devices like hard drives can be invaluable, but when they are unavailable or corrupted, data recovery experts may still be able to assist.

For comprehensive onsite inspections, restoration services, and data recovery support for commercial claims involving business-critical equipment, submit an assignment to TechLoss to ensure accurate and efficient resolutions. 

Alpine Intel’s content is meant to inform and educate readers using general terms and descriptions. They do not replace expert evaluations that determine facts and details related to each unique claim.