Data Center Insurance Solutions

Protecting High-Value Infrastructure & Equipment

Data centers rely on sophisticated and expensive infrastructure including servers, cooling systems, backup generators, electrical systems, and network equipment.

Our property insurance solutions are designed to protect:

• Buildings and facilities
• Server infrastructure
• Mechanical and electrical equipment
• Cooling and HVAC systems
• Backup power systems
• Raised floor systems and cabling

Coverage Considerations:

• Fire & smoke damage
• Water damage & leaks
• Equipment failure
• Flood & earthquake exposure
• Mechanical breakdown
• Boiler & machinery coverage

Because data centers often contain concentrated asset values, properly structuring limits, deductibles, and valuation methodology is critical.

Data centers face a wide range of operational liability exposures due to the constant presence of employees, contractors, vendors, customers, and third-party service providers within highly technical environments.

General Liability insurance helps protect data center owners, operators, developers, and tenants from claims involving bodily injury, property damage, and legal liability arising out of day-to-day operations.

Because many data centers operate continuously with significant electrical infrastructure, construction activity, and third-party access, properly structured liability coverage is a critical component of any risk management program.

Coverage may include:

• Bodily Injury claims
• Third Party Property Damage
• Premises Liability
• Products and completed operations
• Personal and advertising injury
• Legal Defense expenses
• Medical payment coverage
• Contractor related incidents
• Property damage claims

Environmental Risks Are Often Overlooked

Many data centers maintain significant environmental exposures due to backup power systems, fuel storage, battery operations, and cooling infrastructure.

Environmental liability insurance can help protect against pollution related claims, cleanup costs, and third party liability.

Coverage may include:

• Clean up costs
• Bodily injury
• Property damage
• Pollutants migrating to and from your site
• Transportation Coverage
• Business Interruption
• Defense Costs

Potential Environmental Claims could include:

• Fuel tank leaks
• Diesel storage exposures
• Battery storage contamination
• Chemical releases
• Cooling fluid leaks
• Historic Site pollution conditions
• Improper waste disposal
• Refrigerant releases

Environmental Risks Are Often Overlooked

Many data centers maintain significant environmental exposures due to backup power systems, fuel storage, battery operations, and cooling infrastructure.

Environmental liability insurance can help protect against pollution related claims, cleanup costs, and third party liability.

Coverage may include:

• Construction related pollution conditions
• Environmental damage during site development
• Contractor caused contamination events
• Pollution conditions resulting from the negligence of a contractor
• Offsite waste disposal from construction

Potential Environmental Exposures:

• Soil and groundwater cleanup costs
• Environmental consultant expenses
• Regulatory fines and response costs
• Legal defense expenses
• Indoor environmental remediation
• Emergency response costs
• Business interruption impacts
• Pollution cleanup costs
• Stormwater contamination response
• Regulatory investigations
• Environmental monitoring expenses
• Cleanup and remediation expenses
• Construction delay costs
• Legal and consulting fees
• Site investigation expenses
• Third party environmental claims

• Third party bodily injury and property damage
• Contractor related liability disputes
• Regulatory response and compliance expenses
• Hazardous material remediation
• Disposal costs
• Environmental testing
• Stormwater remediation
• Municipal cleanup claims
• Environmental penalties
• Engineering and monitoring costs
• Regulatory defense costs
• Environmental consulting expenses
• Corrective action requirements
• Fines and penalties where insurable
• Operational interruption costs and downtime

Downtime can cost data centers millions of dollars per hour in lost revenue, contractual penalties, and customer impact.

Business interruption insurance helps protect against financial losses resulting from covered operational interruptions.

Coverage may include:

• Lost income from outages
• Extra expense to restore operations
• Utility service interruption
• Dependent business interruption
• Contingent business interruption
• Extended restoration periods

We work with clients to identify operational dependencies and structure coverage that reflects real-world downtime exposures.

Protecting Critical Digital Infrastructure from Cyber Threats

From cloud computing and AI infrastructure to enterprise storage and colocation operations, data centers are responsible for storing, processing, and maintaining vast amounts of critical information and operational uptime.

As cyber threats continue to evolve, data centers face increasingly complex exposures involving ransomware, network interruption, system failures, data breaches, and third-party liability.

Cyber Liability and Technology Errors & Omissions (Tech E&O) insurance helps protect data center owners, operators, and technology providers against the financial, operational, and legal consequences of cyber-related events.

Because even a short interruption can impact thousands of customers and millions of dollars in revenue, cyber insurance has become one of the most critical components of a modern data center risk management program.

Why Cyber Risk Is a Major Exposure for Data Centers
Data centers are considered high-value targets for cybercriminals due to:

• Large concentrations of sensitive data.
• Critical infrastructure dependency.
• Continuous uptime requirements.
• Enterprise and cloud customer relationships.
• AI and high performance computing operations.
• Extensive interconnected networks.

A successful cyber attack against a data center can impact not only the facility operator, but also tenants, enterprise customers, cloud platforms, and downstream business operations across multiple industries.

Common Cyber Threats Facing Data Centers

1. Ransomware Attacks
2. Network Interruption & System Outages
3. Social Engineering & Funds Transfer Fraud
4. Third-Party Vendor & Supply Chain Risk

First Party Coverage May Include:

• Incident response expenses
• Data restoration costs
• Business interruption losses
• Cyber extortion & ransomware payments
• Digital asset restoration
• Crisis management & public relations
• Forensic investigation costs

Third Party Coverage May Include:

• Privacy liability claims
• Regulatory defense expenses
• Customer lawsuits
• Network security liability
• Media liability
• Defense costs and settlements

Technology E&O coverage helps protect data centers against claims alleging:

• Failure to provide contracted services
• Service interruptions
• System performance failures
• Negligence involving technology operations
• Errors in hosting or infrastructure services

For colocation providers, cloud infrastructure operators, and managed service providers, Tech E&O can be critical in addressing contractual liability exposures tied to operational uptime and service delivery.

Potential Cyber Exposures:

• Incident response expenses and services
• Cyber extortion payments
• Revenue loss
• Customer lawsuits
• Data restoration costs
• Public relations expenses
• Breach notification costs
• Regulatory investigations
• Privacy liability claims
• Legal defense and recovery expenses
• Credit monitoring services

• Settlement costs
• Business interruption losses
• SLA related contractual claims
• Funds transfer losses
• Forensic investigation costs
• Crisis response services
• Operational disruption
• Network restoration expenses
• Third party liability claims
• Regulatory scrutiny

Coverage During Construction & Expansion

Data center construction projects involve significant capital investment, complex infrastructure, long lead times, and highly specialized equipment. From site development and structural construction to electrical buildout and server installation, a single loss event can create substantial financial and project delays.

Builder’s Risk insurance is designed to protect data center projects during the course of construction, renovation, expansion, and commissioning.

Because modern data centers contain sophisticated electrical systems, cooling infrastructure, backup power systems, and high-value technology assets, builder’s risk coverage must be carefully structured to address the unique risks associated with mission-critical facilities.

Coverage may apply to:
Builder’s Risk insurance generally provides coverage for physical loss or damage to a project during construction.

• Buildings under construction
• Temporary structures
• Materials, equipment and supplies
• Mechanical and electrical systems
• Cooling infrastructure
• Backup generators
• Switchgear and transformers
• Servers and technology equipment awaiting installation
• Equipment in transit or temporary storage
• Construction damage
• Transit exposures
• Delay in startup (DSU)
• Supply chain disruptions

We work closely with developers, contractors, lenders, and project stakeholders to assist with contractual risk transfers and structure comprehensive construction insurance programs among all the stakeholders.

Data Centers Builders Risk Exposures Include:

• High value electrical infrastructure
• Long equipment procurement timelines
• Sensitive technology systems
• Complex commissioning requirements
• Dependence on specialized contractors
• Utility and power integration exposures
• Damage to installed infrastructure
• Mold prevention and remediation
• Replacement of electrical components
• Construction delays
• Additional labor and material costs/material replacement costs
• Water Damage During Construction
• Equipment Damage During Installation
• Fire During Electrical Buildout
• Theft of Materials & Equipment
• Water remediation
• Replacement of damaged electrical systems and equipment
• Fire and smoke damage
• Debris Removal
• Re-testing and commissioning costs
• Security upgrades
• Expedited shipping expenses
• Transit related property damage, additional transportation expenses

A single construction loss can delay project completion by months and create substantial financial consequences for developers, investors, and operators.

Protecting Employees & Operations

Data centers rely on technicians, engineers, maintenance teams, and operational personnel to maintain continuous performance.

Workers’ compensation insurance helps protect employees and businesses from workplace injury exposures.

Coverage can apply to:

• On site technicians
• Electrical and mechanical personnel
• Maintenance teams
• Construction labor
• Facility operations staff

Data centers often require substantial liability limits due to contractual obligations, investor requirements, and catastrophic risk potential.

Umbrella and excess liability insurance provides additional protection above underlying liability policies.

This coverage is especially important for:

• Large infrastructure projects
• Colocation operations
• High-traffic facilities
• Multi-tenant environments
• Investor backed developments

Equipment breakdown insurance helps protect against sudden and accidental failure of critical infrastructure.

Covered systems may include:

• Cooling systems
• Electrical systems
• Backup generators
• Switchgear
• UPS systems
• Mechanical equipment

This coverage is critical for facilities where operational continuity depends on uninterrupted system performance.

Coverage for Equipment in Transit & Installation

Data center equipment is frequently transported, staged, and installed across multiple locations.

Inland marine insurance can help protect:

• Servers in transit
• Temporary installations
• Mobile equipment
• Specialized technology assets
• Construction related equipment