Are you a victim of a hardware or software malfunction, a mistake, or even a cyber-attack? You are not alone. Many small businesses have experienced data loss due to various unfortunate circumstances, and recovering it can be frustrating.
You may also be curious about the cost of data recovery services. Depending on whether you’ve already scoured the Internet looking for prices, you might be wondering why it is so hard to find an overview of data recovery costs for different storage devices (hard drives and optical media, memory card, etc.) and data loss scenarios (water intrusion, accidental formatting, malware attack).
This blog will provide you with some reasoning behind the ambiguity about data recovery prices and give you information about what to expect.
It will also show you important safeguards that you can put in place beforehand to prevent you from dealing with the cost of recovering data that could be a financial strain on your business.
Why is it that data recovery companies seem to hide their prices?
Are you wondering why no one seems to be able to give you a straight answer? Hidden prices makes it difficult for you to decide if professional data retrieval is worth the effort for your business. There are many reasons for this:
- Each recovery job is unique: Some jobs require no special equipment and take only a few minutes to complete. Some jobs require a skilled technician to perform them. For general prices in New Zealand, click here.
- Remote assessments can be unreliable: Many companies that offer data recovery services perform remote assessments. They ask customers a series of questions over the phone or remotely to get an estimate of the cost. These assessments can be inaccurate because customers aren’t always able to accurately describe the cause and symptoms of data loss.
- Improper quotes can damage reputation: Most importantly, data recovery companies cannot afford to mislead their customers into believing that the data recovery costs will be cheaper than it actually is. Until they have the storage device in hand and can examine it thoroughly, companies don’t talk about data recovery costs.
Yes, this is frustrating. But knowing how to distinguish between the most common data losses and determining how difficult or easy they can be recovered can help you understand the true cost.
Understanding common data loss scenarios
Let’s look closer at data loss scenarios that are most common, starting with the ones that usually cost the least to recover. Of course, this is just a guide and may not reflect the true cost of recovering your data.
Accidental Deletion (Affordable)
Cost : $0-$300
Although it may seem devastating to accidentally delete the wrong file, it is actually one of the easiest and least expensive data loss scenarios. This is because deleted files are physically stored on storage devices until they are overwritten by new data. However, they can be quickly recovered with data recovery software (including DIY solutions such as DiskDrill).
Logical Failure (Moderate)
Cost : $300-$1,000
Logical failure refers to file access problems that are not caused by mechanical problems. These include file directory damage from malware attacks, master boot record corruption, and accidental formatting. Most cases of logically damaged storage devices can’t be retrieved unless they are connected to another computer and scanned in read only mode. This is not something that all DIY solutions can do and so you might require professional help.
Mechanical Failure (Expensive).
Cost : $500-$3,000
If your hard drive makes strange or unexpected noises, encounters water, or dies suddenly, there is a problem. These issues can be costly and require advanced equipment and techniques, as well as a controlled cleanroom environment.
What about a cyber-attack?
Cybercriminals are frequently targeting the data of small businesses. From phishing, malware and ransomware to brute force attacks, there are numerous ways data breaches can occur. While knowing how to prevent a data breach[RJ1] is important to the security of your data, sometimes cybercriminals can still get through.
If your critical business data or client information is being used for nefarious purposes, this could spell disaster for your small business. This is why many small business owners put in a data protection insurance policy in place to safeguard their business if the worst were to happen.
Consider Cyber Liability insurance
Cyber Liability insurance is a type of insurance policy that could cover data recovery costs. It protects small businesses against the legal costs and expenses associated with cybercrime.
It can generally be used to cover restoration and expenses, such as:
- Data breaches, such as theft or loss of client information
- Network security breaches
- Business interruption costs
- Cyber Extortion
- Legal costs and loss, including penalties and fines, resulting from a third-party claim resulting from data breaches or network security breaches against your small business.
Cyber Liability insurance can cover the cost of forensic cyber analysis. This includes the costs of investigating the cause and extent of the breaches.
It can also be used to pay for data recovery and other expenses related to crisis management, as well as public relations costs to mitigate reputational damage.
The bottom line
Recovering lost data can be an incredibly frustrating expensive process, especially if it’s your client’s sensitive information or critical business data on the line. Data protection insurance policies like Cyber Liability insurance can provide you with cover in case your data is compromised.
If you have accidentally deleted your data or you’ve suffered from a software or hardware malfunction, hopefully this blog can help you understand how much you will roughly need to fork out.
Again, given how much the total case of data recovery could fluctuate depending on your situation, consider putting in as much effort to prevent data loss and put in safeguards for if they occur.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2022 BizCover Pty Limited, BizCover Limited is owned by BizCover Pty Ltd (ABN 68 127 707 975)
