Checklist of Comprehensive Coverages

During Construction

• Property and equipment breakdown policies are offered along with builder’s risk insurance during construction, to cover damage from events like fires and storms.
• Specialized surety bonds and credit insurance policies are used extensively in the data center industry to facilitate financing and improve liquidity during the capital-intensive construction phase.
• Standard general liability and workers compensation policies handle claims for physical injury or property damage to outside parties and employees, respectively.
• Professional liability/errors and omissions for design covers claims arising from design errors or engineering oversights that lead to rework and project delays.
• Environmental liability/pollution insurance safeguards against liabilities related to environmental damage or contamination that may occur during construction.
• Marine/cargo insurance protects high-value components (such as servers and cooling systems) against loss or damage while in transit to the construction site.
• Excess/umbrella liability provides an additional layer of protection above the limits of primary liability policies for catastrophic claims.
• Subcontractor default insurance protects the general contractor or owner if a subcontractor fails to fulfill its contractual obligations.

During Operation

• Property and equipment breakdown policies cover physical damage to the facility and equipment from operational events or catastrophic events.
• Business interruption and contingent business interruption compensate for lost revenue from facility outages caused by catastrophic events and disruptions at separate, third-party properties, such as a utility supplier.
• Cyber liability and technology errors and omissions insurance manages the fallout from data breaches, ransomware attacks, and service failures, covering both internal costs and third-party lawsuits.
• Specialized surety bonds and credit insurance policies improve liquidity during operational phases.
• Standard general liability and workers compensation policies handle claims for physical injury or property damage to outside parties and employees.
• Environmental liability/pollution insurance remains important for potential issues arising from fuel spills from generators or leaks from cooling systems.
• Directors and officers liability protects the personal assets of executives from lawsuits alleging wrongful acts in managing the business.