Zurich North America has unveiled a specialised insurance programme specifically designed for data centre construction projects, offering a thorough combination of builders risk, parametric, and operational coverage. Named Data Center Project Guard, the programme will be available for new projects commencing 1 January 2026, according to Patrick McBride, the Dallas-based head of construction property for Zurich North America.
The builders risk coverage forms the foundation of this initiative and builds on Zurich’s existing protection, which provides up to $2 billion in capacity. In addition to standard protection, the policy includes enhanced coverage for potential failures of climate control systems, transit-related risks, and other supply chain exposures that could affect construction schedules or operational continuity. This comprehensive coverage is tailored to meet the unique needs and vulnerabilities of modern data centres, which are high-value, technologically advanced facilities requiring meticulous protection.
The parametric element of the insurance plan provides coverage against non-physical, weather-related losses, specifically addressing rain- and wind-related events. It offers compensation of up to an average daily loss of $50,000, with an aggregate limit of $1 million. Further perils and limits may also be added as needed, including extreme heat, cold, snow, heat index incorporating humidity, and air quality hazards such as wildfire smoke and smog. This component is designed to ensure financial protection and certainty against environmental risks that could disrupt operations or delay project completion.
An optional operational component offers up to 12 months of property coverage following the completion of construction. This is intended to bridge the gap between partial openings of data campuses and the full operational readiness of the facility. “The biggest issue that we hear from our clients and brokers is that gap in cover between when the builders risk coverage ends and when the property cover is supposed to start,” explained Mr McBride, emphasising the necessity of continuous protection in complex construction projects.
By integrating builders risk, parametric protection, and post-construction operational coverage within a single programme, Zurich’s Data Center Project Guard addresses critical vulnerabilities in data centre projects. This initiative reflects the growing demand for targeted insurance solutions in an era when uninterrupted digital operations are essential. It provides developers and operators with robust financial safeguards against both physical and environmental risks, supporting the successful completion and reliable operation of these crucial facilities.