Server room and data centre representing ISR insurance for critical IT infrastructure

ISR Insurance for Data Centres

Industrial Special Risks cover for data centre facilities, server farms, and critical IT infrastructure. Protection for high-value electronic assets and the revenue they generate.

ISR

Specialist

All Risks

Cover Basis

15+

ISR Markets

Recognition

Industry Awards

Data centres are unlike any other commercial property. The value is in the electronic equipment, not the building - and downtime is measured in dollars per minute, not days.

Why Standard Products Fall Short

Data centres flip the usual property insurance equation. In most commercial buildings, the structure is the main asset. In a data centre, the servers, networking equipment, UPS systems, and cooling infrastructure can be worth more than the building itself.

The ISR Difference

Standard commercial property products aren't designed for this. They don't properly value electronic equipment, they don't understand the BI exposure from even a few hours of downtime, and they typically don't cover the specialised fire suppression and environmental control systems that data centres rely on.

Individually Underwritten

ISR provides the individually underwritten cover that data centre operators need. The policy can be structured around the actual asset profile - heavy on electronic equipment and machinery breakdown, with BI calculated on the revenue impact of downtime rather than standard gross profit formulas.

WHY ISR FOR DATA CENTRES

What makes data centres an ISR risk

Data centres combine high-value electronic assets, critical uptime requirements, and specialised building systems. ISR underwriters have the capacity and expertise to cover what standard products can't.

Interior of data centre with server racks and networking infrastructure

01

Electronic Equipment as Primary Asset

Servers, networking, storage systems are the main exposure. ISR can properly value and cover these as the primary insured asset rather than treating them as contents in a building.

02

Downtime-Based Business Interruption

BI for data centres needs to be calculated per hour of outage, not standard gross profit. The revenue impact of even a brief outage can be enormous. ISR allows this to be structured properly.

03

Specialised Building Systems

Redundant power, UPS, generator backup, precision cooling, gas-based fire suppression - all need machinery breakdown cover under ISR.

04

Environmental Control Criticality

Temperature and humidity control failure can destroy equipment in hours. ISR machinery breakdown covers these systems against sudden failure, protecting the assets they keep running.

RISK PROFILE

Key Risks for Data Centre Facilities

Data centres face a unique set of exposures driven by their reliance on power, cooling, and electronic infrastructure. Understanding your risk profile helps us present your facility to the right ISR markets.

Power failure causing cascading equipment shutdown
Cooling system failure leading to equipment overheating
Fire in server racks or electrical infrastructure
Water ingress from cooling system leak or external flood
UPS or generator failure during mains power outage
Gas-based fire suppression system accidental discharge
Electromagnetic interference damaging sensitive equipment
Physical security breach causing equipment damage or theft

COVERAGE DETAILS

What ISR Covers for Data Centres

ISR works on an all-risks basis - rather than listing what's covered, it lists what's excluded. This typically provides broader protection than standard named-perils products.

Data centre server room with rows of equipment and cooling systems
Data centre server room with rows of equipment and cooling systems

Usually Covered

Building and structure (all risks)
Electronic equipment and servers
Networking and storage infrastructure
UPS and power distribution systems
Cooling and environmental control equipment
Business interruption based on downtime revenue impact
Machinery breakdown for all critical systems
Temporary relocation costs

Not Typically Covered

Data loss or corruption (cyber insurance covers this)
Software licensing costs
Third-party liability for service outages (liability cover arranged separately)
Wear and tear or gradual deterioration
Intentional damage
Client equipment stored on behalf (clients need their own cover)

QUESTIONS

Data Centre ISR Insurance FAQs

Standard commercial property products are designed around buildings, not electronic infrastructure. They don't properly value server equipment, don't understand downtime-based BI, and often exclude or sub-limit electronic equipment. ISR can be structured with electronic equipment as the primary insured asset and BI calculated on actual revenue impact.
Yes. An ISR policy can cover electronic equipment, servers, networking gear, UPS systems, and all critical infrastructure as primary insured assets. The sum insured should reflect the full replacement cost of all equipment, not just the building.
Standard BI uses gross profit formulas that don't suit data centres. ISR BI for data centres should be structured around the revenue impact of downtime - calculated per hour or per day of outage. This captures the actual financial exposure from a service disruption.
Gas-based fire suppression (like FM-200 or Novec) is standard in data centres. ISR covers these systems under the machinery breakdown section. It can also cover the cost of recharging the system after an accidental discharge and any consequential damage from the discharge itself.
Flood cover can be included in an ISR policy. For data centres, water damage from any source - external flooding, cooling system leaks, or burst pipes - is a critical exposure because of the value of the electronic equipment at ground level. ISR underwriters assess this on a case-by-case basis.
ISR covers the physical property - the building, the equipment, and the revenue impact of physical damage. Data loss, cyber attacks, and software issues are covered under a separate cyber insurance policy. We arrange both alongside each other.

Need ISR Cover for Your Data Centre?

From colocation facilities to enterprise server farms. We place ISR cover structured around electronic assets, machinery breakdown, and downtime-based business interruption.

Expert Review: 06/04/2026

Verified by Tank Insurance Brokers

Call Us Now +61 2 9000 1155