The North American arm of financial services giant Zurich is the latest insurer to introduce a plan for companies that use cloud computing services. The property coverage for mid-market companies protected against business interruption or extra expense in the case of a cloud computing service failing.
Niche insurers have popped up targeting risks in cloud computing, including local providers in Australia. An alliance of cloud computing providers launched an insurance package to provide protection for cloud services providers in April last year, but insurers had dragged their heels on releasing plans for business customers.
Under Zurich’s plan, it accepted liability for a suspended or inoperable cloud service caused by fire, wind, vandalism, sprinkler leakage or other physical peril. Zurich gave the example of “superstorm Sandy” which shut down data centres in New York, forcing some popular media outlets to temporarily disable their websites, as a scenario which would be covered.
The insurance included risks to the provision of the cloud services as well as consequential lost business revenue.
“A growing number of companies serve their customers through cloud-based platforms,” said Jim Charron, technology practice leader for Zurich North America, in a press release. “It’s important to not only have insurance protection against cyber-attacks like hacking and data breaches, but also be safeguarded against income loss from a business interruption caused by property damage at the cloud facility.”