Anthony Crawford Publishes Article in 7X24 Exchange Magazine on Data Center Insurance Coverages

Chair of Olshan’s Insurance Coverage Law Practice Anthony Crawford authored an article in 7X24 Exchange Magazine (subscription required) entitled “An Insurance Coverage Guide for Protecting Data Centers.” In the article, Anthony examines the critical insurance coverages necessary to protect data center properties through both construction and operational phases, addressing the unique risks posed by the expansion of cloud computing and artificial intelligence. “Insurance serves as a critical risk management tool for both data center construction as well as ongoing operations,” he writes. “It is important that data center operators, risk managers, and other stakeholders understand the unique insurance coverages that will be necessary to protect data center properties and operations.” Anthony’s analysis underscores the complexity of insuring these high-value, mission-critical facilities that operate continuously and face significant exposure to property damage and business income losses. The article highlights key construction-phase coverages including builders’ risk insurance, delay-in-start-up coverage and specialized protections against fire and water damage risks inherent to data center projects. Anthony also addresses operational-phase insurance needs, including property and business interruption coverage, general liability, utility interruption insurance and cyber liability protection. “Data center operators should carefully assess specific coverages provided by their current policies,” he writes. “Where appropriate, they should consult with insurance brokers and policyholder coverage counsel to identify and address any coverage gaps.” Anthony emphasizes that data center operators should negotiate for necessary coverage and modify standard policies through endorsements to address water damage risks and other data center-specific exposures.