Marsh has introduced CloudProtect, a new insurance solution designed to protect companies against first-party losses stemming from a cloud service provider’s failure.
The company said that the new risk transfer solution, developed in partnership with cyber risk insurers, will cover lost revenue and extra expense resulting from the failure of the insured’s cloud service provider.
According to the company, CloudProtect offers reimbursement for costs incurred by an insured in the procurement of services from a new cloud provider, including the transition of its software, information, and data.
Marsh network security and privacy practice leader Robert Parisi said that 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.
"Marsh’s CloudProtect solution helps to mitigate this risk by offering additional protections that are not adequately addressed by traditional insurance policies," Parisi said.