Uptime Is the Promise. Protect What Keeps It.
Protecting the facilities the digital economy runs on
Data centers concentrate enormous value and enormous dependency under one roof. A single site can hold tens of millions of dollars in servers, cooling, and power infrastructure, while contractually guaranteeing the uptime that hundreds of tenants build their own businesses on. When power, cooling, or connectivity fails — even briefly — the loss is not just equipment; it is service-level penalties, tenant claims, and reputational damage that compound by the minute. As demand for cloud and AI compute accelerates, the capital at stake and the cost of an outage have only grown.
Insuring a data center is about protecting continuity, not just property — because the product being sold is reliability itself.
Key Risks in Operations
Catastrophic property values in servers, cooling, power, and building infrastructure
Business interruption and the service-level penalties that follow any loss of uptime
Equipment breakdown of cooling, UPS, generator, and electrical systems — the single points of failure
Dependent business interruption when a utility, carrier, or upstream provider fails
Tenant and colocation liability under strict uptime and service-level agreements
Cyber and network exposure spanning both physical access and the data tenants store
Environmental exposure from diesel generators, battery arrays, and refrigerants
Terrorism and physical-attack risk as critical infrastructure
Losses escalate quickly because the entire value proposition is continuity.
Core Coverages
Commercial Property — Covers the building and the high-value server, cooling, power, and electrical infrastructure against physical loss, written to the facility's true replacement values.
Equipment Breakdown — Responds to failure of cooling, UPS, generator, and electrical systems — the mechanical and electrical risks most likely to cause an outage.
Business Interruption & Extra Expense — Replaces lost revenue and funds emergency measures when a covered event interrupts operations, including dependent business interruption from upstream providers.
Technology Errors & Omissions / Professional Liability — Covers claims that the facility failed to meet its service-level or uptime commitments to tenants.
Cyber & Privacy Liability — Responds to breaches spanning physical access control and the tenant data housed on-site.
General Liability — Protects against third-party bodily injury and property damage at the facility.
Environmental / Pollution Liability — Addresses exposure from on-site fuel, battery, and refrigerant systems.
Terrorism & Property Resilience Cover — Protects critical-infrastructure facilities against attack and politically motivated damage.
Workers' Compensation, D&O & Umbrella / Excess Liability — Round out the program for staff, leadership, and the large limits these facilities require.
What's Commonly Overlooked
Data center insurance programs are often weakened by:
Property limits set below the true replacement cost of densely packed equipment
Business interruption that ignores service-level penalties owed to tenants
No dependent business interruption for utility and carrier dependencies
Equipment breakdown overlooked as a distinct cooling-and-power exposure
Technology E&O gaps around uptime and SLA commitments
Thin cyber limits for a facility holding tenant data at scale
These gaps typically surface at claim time — not before.
A cooling failure forces a partial shutdown and triggers tenant SLA penalties
A utility outage exceeds generator capacity and interrupts service
An electrical fault damages racks of tenant and facility equipment
A breach of physical access controls exposes tenant data
A transformer or battery event creates an environmental cleanup obligation
Even a short outage can cost far more in penalties and claims than the physical damage itself.
Why Proper Placement Matters
Coverage varies significantly based on:
Facility tier, redundancy (N+1, 2N), and single points of failure
The service-level and uptime commitments in tenant agreements
True replacement values of equipment and infrastructure
Utility, carrier, and cloud dependencies
On-site fuel, battery, and refrigerant systems
Improper placement can leave the uptime promise — the facility's entire product — uninsured.
Our Approach
At Cory Washington & Co., we structure data center and colocation insurance around the thing you actually sell: continuity. We align property and equipment values to reality, build business interruption around the SLA penalties and dependencies that drive real loss, and coordinate technology E&O and cyber so a single outage is answered end to end. For the broader technology sector, see our technology company insurance and technology E&O pages.
Reliability is the product. We help you insure it like one.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
See the coverages a data center business may carry — core, prevalent, and situational — plus the gap most often missed, in the Data Center Coverage Checklist.
Complete the Data Center Supplemental online in a few guided steps, download the fillable PDF, or browse all applications.
Frequently Asked Questions
How do I get data center & colocation insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate data center & colocation insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
How much does data center & colocation insurance cost?
There is no flat rate. The cost of data center & colocation insurance reflects your industry, your size (payroll and revenue), your claims history, and the limits and deductibles you choose. We market your account to multiple carriers, compare the real quotes side by side, and explain what is driving each number so you can weigh coverage against price with confidence.
Who needs data center & colocation insurance?
It depends on your situation. Some coverage is required by law; more often, data center & colocation insurance is required by a contract, lease, lender, or client before they will do business with you — and even when it is not mandated, it guards against exposures that can be severe. We review your operations and obligations and tell you plainly what you need and why.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.