As data center construction booms across the United States, a pair of legal experts recently said the lack of commercial insurance products customized for data centers present potential pitfalls that could surface if operators aren’t paying close attention to policy language.
Amy Koss, an associate attorney at law firm Reed Smith, said in an interview with Insurance Journal that while language in existing property/casualty policies can be helpful, it’s not tailored exactly to what data centers need. Sometimes, taking off-the-shelf products and trying to make them fit the unique needs and challenges of the country’s growing number of data centers works fine.
Other times, they just don’t quite fit.
“We’ve been a little bit surprised,” Stephen Raptis, a partner at Reed Smith, said in a June interview. “We expected by now that there would be data center-specific insurance policies out there. But we’ve talked to lots of brokers, and nobody knows about any that exist.”
Koss and Raptis believed it is a matter of when—not if—specialty produc…