Lockton partners with Parametrix to offer SLA insurance for data centers

By Mia MacGregor

June 23 - (The Insurer) - Lockton has announced a partnership with New York-based MGA Parametrix to underwrite service level agreement (SLA) insurance for the data center market.

Backed by syndicates at Lloyd’s of London, the parametric coverage provides immediate financial compensation in case of SLA breaches, benefiting data center operators, developers, investors, and tenants.

Parametrix specialises in digital business interruption solutions to protect against financial losses due to technology downtime.

“As uptime requirements and financial scrutiny grow, availability is no longer just a technical issue, it’s a strategic and financial risk. This partnership helps operators and investors manage that risk proactively- optimizing capital efficiency, lowering financing costs, and increasing confidence in the stability of their assets,” said Rick Wong, Parametrix’s head of insurance.

Trevor Smith, SVP, global technology risk practice managing director at Lockton, added, “As our data center clients seek more robust risk management solutions, this offering provides a level of protection not currently available in the insurance marketplace.”