#United States #Schaumburg #Zurich North America #Builders Risk #Data Center Project Guard

Zurich North America Introduces Innovative Builders Risk Solution for Data Centers

In a significant development for the construction and insurance sectors, Zurich North America has launched an unprecedented product aimed specifically at the growing data center market. Dubbed Data Center Project Guard, this first-of-its-kind Builders Risk insurance offers unique features designed to address the specific risks associated with the rapid expansion of data centers fueled by advancements in artificial intelligence, cloud computing, and the trend toward hyperscale facilities.

Zurich, a recognized leader in construction risk management, has long been at the forefront of insuring large-scale infrastructure projects. The company has successfully supported over 250 data center projects across more than twenty states, insuring approximately $350 billion in such ventures. This new offering marks a strategic extension of their commitment to safeguarding investments made in this critical segment of the economy, which is projected to reach a staggering $6.7 trillion in global investments by 2030, according to McKinsey.

Addressing Coverage Gaps and Unique Risks

The Data Center Project Guard is tailored to meet the distinctive needs of hyperscalers, contractors, and developers involved in constructing next-generation digital infrastructure. Coverage gaps prevalent in traditional Builders Risk policies are effectively bridged through this new offering. For instance, it integrates operational property coverage that can extend up to 12 months post-construction, helping to protect investments during transitional phases such as project handovers.

In addition, it includes parametric coverage that automatically accounts for weather-related delays, a significant concern noted in the construction of data centers where timelines can often be disrupted by severe climate conditions. Such proactive measures are essential in minimizing losses linked to common environmental challenges, such as wind or hail damage, that data center projects frequently face.

Features Designed for Modern Risks

Data Center Project Guard goes beyond normal Builders Risk provisions by incorporating specific features that reflect the evolving nature of data center construction. The insurance is structured to cover various logistical challenges, including losses incurred at suppliers' locations or during transit, as well as damage to climate control systems which are critical for maintaining optimal operating conditions for sensitive server technology.

Patrick McBride, Zurich’s Head of Construction Property, emphasizes that the increasing size of data centers, sometimes spanning millions of square feet, brings with it complex power and cooling requirements. “As investment escalates and construction timelines tighten, our insurance offering must evolve to mitigate these enhanced risks effectively,” he states.

Expert Support and Mitigation Strategies

Alongside comprehensive insurance coverage, Zurich's Data Center Project Guard integrates expert advice through a network of almost 100 construction risk engineers located nationally. These specialists bring a wealth of knowledge garnered from experience with top-tier data center operators and play an integral role from the design stage through to project completion. Their hands-on insights can help identify potential issues early, ensuring that projects remain on track and within budget.

Arooran Sivasubramaniam, who leads Zurich Resilience Solutions, highlights this partnership approach, indicating that the risk engineers deliver bespoke advisory services tailored to meet the unique needs of each data center project. “Our team employs deep expertise in mitigating the most consequential risks that affect data centers, providing practical solutions that add real value,” he adds.

Timely Availability and Broader Solutions

Data Center Project Guard is set to be available for new projects in the United States starting January 1, 2026. This policy will be offered on a project-specific and non-admitted basis, complementing a full suite of Zurich's solutions ranging from Casualty and Professional Liability coverages to Contract Surety bonds. Zurich has been a pioneer in construction insurance for over 25 years, winning accolades such as the 2025 Business Insurance Insurer Team of the Year award for its Builders Risk capabilities.

As the data center market continues to surge, innovations like Zurich's Data Center Project Guard provide essential protections that can safeguard investments and promote the growth of digital infrastructure crucial to today’s economy. For more information, prospective clients and interested parties can explore Zurich's construction solutions for tailored insurance offerings that meet their specific needs.