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Aon Enhances Data Center Lifecycle Insurance Program

Aon plc, a prominent global professional services firm, has recently unveiled a significant expansion of its Data Center Lifecycle Insurance Program (DCLP), increasing its capacity by $1 billion to reach a remarkable total of $2.5 billion. This strategic decision reflects Aon’s commitment to adapting to the ever-increasing global investments in cloud computing, artificial intelligence, and overall digital infrastructure, which are accompanied by growing complexities in risk management across the data center lifecycle.

Initially introduced in 2025, the DCLP represents a comprehensive and multi-faceted insurance solution tailored to support data center projects throughout their development and operational phases. By merging various traditionally isolated risk categories into a single cohesive insurance offering, DCLP promises to enhance efficiency and effectiveness in project execution. It thoughtfully integrates essential coverage areas including construction, cyber risk, cargo, and operational issues, thereby enabling clients to minimize interruptions and navigate their projects with greater ease and confidence.

Greg Case, Aon’s president and CEO, emphasized the importance of risk management in the ever-evolving landscape of digital infrastructure. "Managing risk throughout the data center lifecycle is a strategic imperative, as these platforms are crucial for innovation, connectivity, and economic growth," he stated. Case underlined the significance of instilling resilience into data center infrastructure to safeguard the broader business ecosystem in these challenging times.

As data centers evolve into more substantial and complex operational entities, Aon's extended DCLP will support a wide array of stakeholders, including investors, developers, and operators. By coupling insurance capacity with advanced risk engineering and analytics, this program facilitates the anticipation of potential threats, promotes operational resilience, and ultimately drives long-term performance for clients in the sector.

Joe Peiser, CEO of Commercial Risk for Aon, pointed out that when disruptions occur in data center operations, the repercussions can extend significantly beyond the confines of one facility, adversely affecting customer relations, supply chains, and wider business functions. The DCLP expansion is a strategic move to aid clients in navigating risks throughout the entire data center lifecycle—from initial construction phases to ongoing operational status—thus enabling swifter and more reliable project execution.

Key Features of the Expanded DCLP

The enhanced DCLP offers a range of robust features designed to cater to the needs of modern data centers:

• - Coverage of Up to $2.5 Billion: Protection available for Construction All Risks, Delay in Start-Up (DSU), and Operational Property Damage/Business Interruption.
• - Cyber Coverage: Insurance for Cyber, Cyber Property Damage, and Tech Errors & Omissions (EO) up to $400 million, including DSU for both damage and non-damage events, business interruption, and Service Level Agreement (SLA) violations.
• - Third-Party Liability: Coverage up to $100 million, excluding exposures in the U.S.
• - Project Cargo Insurance: Transport insurance available up to $500 million.
• - Integrated Risk Engineering and Cyber Impact Modelling: Provided through Aon’s Global Risk Consulting team to ensure clients are equipped with the tools necessary to assess and manage potential risks effectively.

This major expansion of Aon's DCLP not only underscores the company’s dedication to delivering innovative insurance solutions but also enhances its strategic capacity to address the unique complexities of modern technology projects. In the latter part of the previous year, Aon also disclosed the renewal of its Client Treaty, which aims to provide extensive multi-line coverage for intricate risks, now with improved terms that feature additional support for prolonged construction timelines. This renewal is indicative of Aon’s commitment to helping clients navigate and thrive amid the distinctive challenges posed by large-scale technology initiatives.

Aon continues to advocate for proactive strategies surrounding risk management as businesses worldwide adapt to the rapid advancements in technology and the ensuing complexities they produce. By steering clear of conventional practices and innovating solutions like the DCLP, Aon is well-positioned to offer a safety net that empowers its clients in their digital transformation journeys.