Zurich North America has announced the launch of a specialised insurance programme tailored for data centre construction projects, offering a comprehensive combination of builders risk, parametric, and operational coverage. The scheme, known as Data Center Project Guard, will be available for new projects starting 1 January 2026, according to Patrick McBride, the Dallas-based head of construction property for Zurich North America.
The builders risk coverage forms the cornerstone of the programme and builds on Zurich’s existing protection, which provides up to $2 billion in capacity. Beyond the standard coverage, the policy also includes additional protection against potential failures of climate control systems, transit-related risks, and other supply chain exposures that could affect construction schedules or operations. This extensive coverage is designed to address the unique needs and vulnerabilities of modern data centres, which are high-value and technologically complex facilities.
The parametric element of the policy addresses non-physical, weather-related losses, covering rain- and wind-related incidents. It allows compensation for up to an average daily loss of $50,000, with an aggregate limit of $1 million. Additional perils and limits may also be included, such as extreme heat, cold, snow, heat index (including humidity), and air quality hazards such as wildfire smoke and smog. This component ensures financial protection and certainty against environmental risks that could disrupt operations or delay project completion.
An optional operational component provides up to 12 months of property coverage after construction completion. This aims to bridge the gap between partial openings of data campuses and full operational readiness. “The biggest issue that we hear from our clients and brokers is that gap in cover between when the builders risk coverage ends and when the property cover is supposed to start,” explained Mr McBride, highlighting the critical need for continuous protection in complex construction projects.
By combining builders risk, parametric coverage, and post-construction operational protection in a single programme, Zurich’s Data Center Project Guard effectively addresses key vulnerabilities in data centre development. The initiative reflects the growing demand for targeted insurance solutions in an era when uninterrupted digital operations are essential. It ensures that developers and operators have strong financial safeguards against both physical and environmental risks, supporting the successful completion and operation of these vital facilities.