Insurance firm Lockton has launched a new data center insurance product to cover against outages.

Insurance brokerage Lockton has partnered with Parametrix, a provider of digital business interruption risk solutions, to bring a Service Level Agreement (SLA) insurance offering to the data center market.

Backed by syndicates at Lloyd’s of London, the coverage delivers financial compensation in the event of an SLA breach.

The companies said the parametric coverage offers immediate payouts triggered by predefined violations of SLA terms. Addressing demand for financial protection against digital infrastructure performance risk, the coverage can reportedly improve creditworthiness, lower interest rates, and provide investor confidence.

“We’re excited to partner with Lockton to offer SLA insurance to the data center ecosystem,” said Rick Wong, Parametrix’s head of insurance. “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.”

“This solution addresses one of the most acute financial pain points the data center industry is facing today: downtime-related SLA exposure,” added Preet Gill, EVP and technology risk practice leader at Lockton. “It’s a prime example of how our team combines deep sector expertise with innovative insurance structures to deliver immediate, measurable value. We’re proud to offer a product that directly strengthens our clients’ capital strategies and operational resilience.”

Parametrix says it protects against financial losses from technology downtime via a network of monitoring systems, which collect and analyze real-time data on the performance and availability of digital services.

Insurance broker and risk advisor Marsh recently launched a new insurance product covering risks related to data center construction.