Data Center Lifecycle Insurance
Data Center Lifecycle Insurance Program
An integrated construction and operational risk transfer solution spanning the full lifespan of a data center.
Data centers are the backbone of digital infrastructure and are increasingly critical to society. Aon’s Data Center Lifecycle Insurance Program (DCLP) is an integrated insurance solution that delivers extensive capacity across the full lifecycle of digital infrastructure assets.
An innovative lifecycle solution for clients
As trusted risk advisors, we partner with your organization at every stage of the risk journey, working alongside you to mitigate the financial impact of loss and deliver better outcomes through ongoing, collaborative engagement.
Drawing on our global relationships and access to key insurance markets, we bring together specialist construction, liability, operational, and cyber capacity and expertise. This is underpinned by deep experience in data centers and digital infrastructure, and a comprehensive understanding of the coverage considerations specific to the data center industry.
A solution tailored to your role
What are the benefits of DCLP?
- One fully integrated wording with an established set of leading underwriters.
- Seamless coverage from construction through to operational phase.
- Bespoke coverage: Specifically designed for data centers, tailored to address their unique risks and operational needs.
- Coverage is also available for existing data centers that are already operational.
- A single solution that provides coverage for a range of risks that would otherwise require separate wordings and policies.
- Comprehensive multi-line insurance that covers Property, Liability, Construction, Delay in Start-Up, Business Interruption, Cyber, Cyber Property Damage, and Tech E&O, Marine Cargo/Stock-Throughput and resultant Delay in Start–Up. Additional options include cover for Terrorism and US Excess Liability.
- Pre-agreed capacity from a panel of insurers.
- Security: Supported by A rated or higher security through a combination of Lloyd’s and company markets.
- Risk engineering support and capabilities can be provided alongside the overall insurance package from pre-construction through construction and into operations.
- Additional services for Weather Risk Advisory, Bespoke Digital Infrastructure Claim & Risk Control Program, probable maximum loss (PML)/ maximum foreseeable loss (MFL) Analytics, and Security Risk Management Consulting are available.
How DCLP addresses client challenges
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Inconsistent coverage and non-tailored policy solutions
- Fully integrated lifecycle solution with true structural integration across all phases.
- Efficiencies due to pre-agreed capacity and one single placement.
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Securing adequate insurance market capacity
- Substantial capacity backed by specialist construction, cyber, liability and property insurers.
- Capacity that may be capable of providing more than the standard market aggregation, supporting hyperscale mega-projects without fragmentation.
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Integration challenges of the Data Center value chain
- A structured solution across multiple risks. The transition of phased/sectional completion of data centers is fully embedded within DCLP, with automatic transition from construction to operational insurance coverage.
- Broad based insurance solution that may provide investor confidence.
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Risk engineering support and solutions
- Risk engineering support and capabilities are available, including commissioning-focused best practice guidelines (through Aon, carriers and specialist third parties).
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Seamless transition from construction to operational insurance programs
- DCLP has the ability to provide seamless cover with explicit embedded commissioning coverage, and automatic delay-in-start-up (DSU) sum reduction as phases go live.
- DCLP’s structure may help to avoid potential disputes on claims and gaps in cover as it is a true lifecycle solution.
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Multiple policies addressing various risk exposures
- DCLP provides materially broadened coverage extensions under a consolidated program, including debris removal, repeat testing, off-site exposures, DSU revenue protection, and service interruption triggers for data centers.
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How to manage Total Cost of Risk?
- DCLP can help to deliver economies of scale, broader cover and focused risk advisory.
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