Innovative new CloudProtect product fills in cyber risk policy gap.
Marsh has announced that it is launching a first of its kind form of innovative insurance technology that is designed to help companies to mitigate the risks associated with using cloud computing.
This CloudProtect policy can help to protect against failures from cloud service providers from leading to losses.
As the tech industry plunges forward and demands greater efficiency, cloud computing has skyrocketed in popularity for IT service delivery, data storage, as well as software applications. However, companies using the internet and these central remote servers are not only improving their technological strategies, but they are also exposing themselves to a number of risks if the provider is ever unable to stop a cyber attack, if insolvency occurs, or if another event opens the company’s data to an unauthorized third party.
Companies that contract cloud service providers have few options when network interruptions occur, as the majority of those providers will provide only very minimal – if any – compensation for this type of loss.
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Equally, cyber insurers usually offer only small sub-limits if they don’t exclude interruption risks altogether.
Marsh developed CloudProtect and its surrounding insurance technology by working with the top cyber risk insurance companies. It provides a risk transfer solution that is fully customized and which provides protection for the revenue that is lost and for the extra expenses that occur as a result of the failure of the policyholder’s provider of cloud services. The coverage also reimburses the insured company for the costs that result from having to locate and implement the cloud services of a new provider, such as the transition of software, data, and other information.
According to the Marsh network security and privacy practice leader, Robert Parisi, “Cloud computing enables much more efficient computing by centralizing storage, memory, processing, and bandwidth, but it also can lead to network interruptions and lost income should the cloud go down.” He added that this new insurance technology solution offered by his company can help to cut back that risk by providing another layer of protection that other cyber coverage products have yet to address.