The risk in focus
Data centres combine high-value physical infrastructure with critical technology, power, cooling, connectivity and service-continuity exposures. Mercantile helps Australian data centre owners and operators prepare clear underwriting information and review how property, business interruption, liability, cyber and technology insurance may respond.
What makes this risk different?
Data centre risks can differ substantially according to facility size, occupancy, customer profile, redundancy, power architecture, cooling systems and the services provided. A specialist insurance review should reflect the actual operations rather than relying on a generic technology-business description.
Insurance questions to review
- Property damage: buildings, plant, electrical infrastructure, cooling equipment, generators and other insured assets, subject to policy terms.
- Business interruption: insured loss of revenue or increased costs following a covered event, including the applicable indemnity period and dependencies.
- Public liability: third-party injury or property damage exposures associated with the premises and operations.
- Technology professional indemnity: where the insured provides defined technology, managed or professional services that may create financial-loss exposures.
- Cyber insurance: relevant network-security, privacy, incident-response and selected business-interruption exposures, subject to wording.
- Machinery breakdown: where available and appropriate for critical electrical, mechanical and cooling plant.
Limits, sublimits, excesses, exclusions, insured perils and policy triggers should be reviewed against the actual facility and operations. No item listed here is automatically included.
Critical infrastructure and dependencies
Data centres can depend on electricity supply, telecommunications, cooling, fuel, specialist equipment and external service providers. The extent to which a policy responds to interruption involving these dependencies varies by wording, trigger, sublimit and exclusion.
What underwriters may need to understand
Useful underwriting information can include facility values, construction, fire protection, electrical design, UPS and generator arrangements, cooling systems, redundancy, maintenance, physical security, tenant or customer concentration, service commitments, maximum foreseeable downtime, disaster recovery arrangements and claims history.
Business interruption considerations
For facilities providing colocation, hosting or related services, underwriters may need a clear explanation of revenue streams, customer concentration, contractual service commitments and realistic restoration periods. The selected indemnity period and insured dependencies should reflect the actual risk and policy wording.
Discuss your data centre risk
We can review your operations, existing insurance and underwriting information and identify the information needed for an appropriate market approach.
Request an insurance review · 1300 310 467
General insurance information only. Insurance needs, availability and claim outcomes depend on your circumstances and policy terms. Legal, engineering, regulatory and operational matters should be addressed with appropriately qualified advisers.