Plant failures
Electrical and cooling failures can damage equipment or stop operations. Hardware repair, extra expense, and lost income need applicable terms.
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Data Center Insurance
Housing a customer's server does not by itself make you responsible for processing its data. Your facility protection should identify the ownership and services accepted, with hardware repair, extra expense and income interests distinguished from tenant financial demands or a cyber incident.
Talk with The Southern Agency about your operation, policy terms, and the information carriers need.
Industry overview
You protect critical power, cooling, and computing infrastructure for your own use or for customers. A power switchgear fault or cooling failure can damage equipment and trigger expensive operational outages.
The Southern Agency can review your infrastructure, hardware ownership and actual customer services with you. We can compare accepted property/breakdown causes, restoration time and purchased income/extra expense with tenant interests and service claims, rather than assuming an uptime promise is a property benefit.
Risks worth discussing
Site hazards
Fire, water, and location-specific catastrophe exposures can affect concentrated values. Flood and earthquake are not automatically included.
Customer and data interests
Tenant-owned hardware and financial-loss claims may sit outside ordinary owned-property/GL terms. Housing servers alone does not establish data-processing responsibility.
Coverage worth discussing
Policies to ask about. Which ones fit depends on your operations, your contracts, and the carrier’s forms.
- Commercial Property InsuranceMay cover insured building, servers, and systems. Confirm ownership, replacement values, catastrophe exclusions, and customer-property interests.
- Equipment Breakdown InsuranceMay address insured electrical/mechanical failures. Resulting equipment damage, income, and extra expense require included benefits.
- Commercial Package PolicyCan combine selected property/liability parts. Business income and utility/dependent-property extensions must be explicitly included and adequate.
- Cyber Liability InsuranceMay address covered system/data incidents based on actual operator services and access. It is not triggered simply by storing hardware.
- General Liability InsuranceMay address covered visitor injury or physical damage. Custody, data, and professional exclusions require review.
- Workers Compensation InsuranceMay provide benefits for covered facility employee injuries, subject to duties, worker status, and state rules.
- Umbrella / Excess Liability InsuranceMay add limits above scheduled liability. Asset value does not determine liability limits, and tech/cyber excess is not automatic.
Situations to think through
These hypothetical examples are not agency claim results. Whether a loss is covered depends on the facts, policy terms, and applicable exclusions.
Hypothetical: Switchgear failure stops operations
An insured electrical failure causes shutdown. Breakdown and included income/extra expense may address eligible costs; customer SLA penalties are not ordinary business-income benefits.
Hypothetical: Chiller failure damages hardware
A chiller failure overheats equipment. Resulting hardware damage requires suitable terms and ownership interests; data restoration and customer losses are separate questions.
Hypothetical: Suppression discharge affects a hall
A discharge damages servers. Property may pay an insured water/suppression loss, subject to cause and exclusions; the tenant's assets need an appropriate insured interest.
Before you talk to an agent
Questions to raise
- Separate own, financed and customer hardware and difficult-to-replace switchgear/cooling values. Compare replacement lead time and qualifying equipment/property damage with accepted customer custody; a customer's contract demand may also need expressly accepted technology-service liability, not ordinary GL or property income.
- Map actual utility paths, redundancy and dependent sites against selected outage extensions and restoration/waiting periods. Repairing owned equipment, extra expense, your lost income and tenant SLA credits are different interests; resilient design is not a promise of claim payment.
Contract terms to check
- Compare financing, maintenance, and customer responsibilities with insured interests.
- Review uptime promises separately from property income cover; penalties and guaranteed credits are not automatically included.
What the agent conversation looks like
Start with the work you do and the questions your current policies leave unanswered. Carrier options depend on your location, risk, and underwriting. Explore our approach.
- ListenReview your operations, current coverage, and past claims.
- AssessIdentify potential hazards and discuss ways to reduce risk.
- BuildDiscuss policy and carrier options, premium costs, and audits.
- SupportReview changes and help you plan ahead as your needs develop.
Questions owners ask
Does business income pay SLA penalties?
Not automatically. It addresses defined insured income loss, while customer claims and contractual remedies have different terms.
Is flood part of property insurance?
Do not assume it. Review location-specific perils and applicable exclusions, limits, and deductibles.
Are tenant servers my insured property?
Only where the policy includes the interest. Ownership and custody must be identified.
Does every cooling shutdown qualify?
No. Insured breakdown, resulting loss, and interruption conditions must be met; maintenance and wear differ.
Talk through your data center coverage
Bring your questions, current policies, and relevant contracts. An agent can review coverage terms, exclusions, and the information carriers ask for, then explain the options available to you.