AROUND half of all Irish companies who have lost computer data due to flood damage are set to go out of business, according to a specialist company tasked with salvaging information.

Databackup.ie has witnessed a significant increase in calls from firms whose digital information and back-up files have been destroyed due to recent flooding.

While Irish insurance companies will cover hardware and equipment, it is not possible to cover the data stored by companies.

"There are some companies that there is so much water damage we can't get the information back for them and if we can't, no one can," a company spokesman said.

"There was one accountancy firm who, I think, will be in trouble. There will be companies going out of business, absolutely."

Last Wednesday morning, the Databackup had five call- outs to companies seeking the emergency salvage of critical data. Not all the firms were getting good news.

"There are a lot of companies that have computer equipment in their basements. People who have lost their information – a lot of these customers will be able to get it back but it's a big expense," said the spokesman.

"They need the information because without it their businesses won't function and most of the insurance companies wouldn't cover the data.

"There is a large possibility that the data would be able to be restored but over 50% of companies who lose their data go out of business; they lose everything.

"In this day and age you wouldn't know who owes you what.

"A lot of people are keeping their backups in the same building which are also getting destroyed."

Some companies use fire- and waterproof safes on site to store back up information but those who lose critical data will not be covered.

"If you tell an insurance company that you are out €100,000 from overdue creditors, there is nothing they can do about it really."