As reported by Reuven Cohen, in Forbes: “Today the MSPAlliance in partnership with Lockton Affinity, the world’s largest privately owned independent insurance broker announced the availability of a new Cloud and Managed Services Insurance. The cyber insurance is aimed at service providers who require comprehensive protection.”
This is not at all new. Start-up cloudinsure offers what it describes as a “Cloud Insurance platform designed to specifically address emerging liabilities within the Cloud environment. Through our innovative underwriting models and proprietary analytics, we bring insurance solutions that move at the pace of Cloud technology.”
Why is this needed? As enterprises become more dependent upon public cloud providers, outages will cause loss of revenue. Loss of revenue will cause lawsuits. Thus, cloud providers are looking to mediate their risks.
However, this type of insurance does not seem that far removed from traditional liability insurance around other types of technology. I suspect that most cloud providers will adopt those more familiar models, with familiar underwriters. In the mean time, we’ll see some innovative and unique offerings in this area.