Key Takeaways: Lockton’s Builders Risk & Property Program • Lockton’s new Builders Risk & Property Program is designed to address a critical coverage gap between construction and operations created by phased data center development. |
Lockton, the world's largest privately held independent insurance brokerage, today announced the availability of its Builders Risk & Property Program, an insurer partner program designed to help data center owners, developers, operators and investors navigate the transition from construction to operations with speed and certainty.
Developed by Lockton's Data Centers & Digital Infrastructure Practice (opens a new window), the Builders Risk & Property Program is one component of Lockton's broader advisory approach to data center risk. The industry-leading solution is designed specifically for the complexities of modern data center development, with a curated coverage structure that addresses the sequencing and operational challenges inherent in large, multiphase projects while providing greater coverage certainty from construction through operations.
Lockton’s new program is supported by more than $6 billion in builders risk capacity and $7.5 billion in operational property capacity, enabling Lockton to more quickly and efficiently support some of the industry's largest hyperscale, colocation, enterprise, and digital infrastructure projects.
Unlike traditional construction projects, data centers often become operational in stages while portions of the facility remain under construction. This creates the potential for coverage gaps and administrative complexity during project transitions.
"Lockton's Builders Risk & Property Program is another tool that helps us create tailored solutions at the right tempo for our clients," said James Nelson, U.S. Practice Leader for Data Centers and Digital Infrastructure at Lockton. "Every data center project is different, and our role is to guide clients through evolving risks across the asset lifecycle with strategies informed by their development plans, operational goals, and long-term growth objectives."
Supported by Lockton's Data Centers & Digital Infrastructure (DCDI) Practice, the program can serve as one element of a broader risk strategy. The client’s Lockton serve represent 36GW+ of the current DCDI market. Through early engagement, Lockton advisors work alongside clients to evaluate project-specific risks, optimize risk transfer, align coverage with lender requirements, and support a seamless handoff from construction to operations. The result is a ready-to-deploy, fully customizable solution built for the full data center lifecycle.
Connect (opens a new window) with a member of Lockton’s Data Centers & Digital Infrastructure Practice to learn more.