Lockton, the world’s largest privately held insurance brokerage, and Parametrix, the leading provider of digital business interruption risk solutions, have partnered to bring an innovative SLA insurance to the data center market. The coverage delivers immediate financial compensation in the event of a Service Level Agreement (SLA) breach. This ground-breaking solution helps unlock capital, reduce operational risk, and strengthen financing terms for data center operators, developers, investors, and tenants.
Backed by leading syndicates at Lloyd’s of London, the parametric coverage addresses the growing demand for financial protection against performance risk in digital infrastructure. With immediate payouts triggered by predefined violations of SLA terms, the insurance solution provides essential coverage that improves creditworthiness, lowers interest rates, and enhances investor confidence.
SLA insurance delivers value across the data center ecosystem:
Developers secure more attractive financing terms by mitigating downtime risk through insured SLA guarantees.
Operators unlock escrowed funds, reduce borrowing costs, and enhance service reliability.
Investors gain greater financial certainty and faster recovery in downtime scenarios.
Tenants benefit from stronger SLA-backed contracts, reinforcing trust and continuity.
A Strategic Partnership Built on Deep Sector Expertise
Parametric SLA insurance is available and underwritten through Lockton, which has deep data center-specific expertise across every stage of the data center asset lifecycle – project financing, construction, operations, and divestment. When you partner with Lockton, you benefit from a single, integrated global team that ensures seamless service continuity and a 360-degree view of risk.
Through this SLA offering, Lockton underwrites and delivers a robust, actionable strategy that protects digital infrastructure and supports data center development by enabling project funding for both the buildout and operational phases.
“We’re excited to partner with Lockton to offer SLA insurance to the data center ecosystem.” said Rick Wong, Parametrix’s Head of Insurance. “As uptime requirements and financial scrutiny grow, availability is no longer just a technical issue, it’s a strategic and financial risk. This partnership helps operators and investors manage that risk proactively- optimizing capital efficiency, lowering financing costs, and increasing confidence in the stability of their assets.”
“This solution addresses one of the most acute financial pain points the data center industry is facing today: downtime-related SLA exposure,” said Preet Gill, Executive Vice President and Technology Risk Practice Leader at Lockton. “It’s a prime example of how our team combines deep sector expertise with innovative insurance structures to deliver immediate, measurable value. We’re proud to offer a product that directly strengthens our clients’ capital strategies and operational resilience.”
The parametric SLA product is the latest in a series of innovations redefining the role of insurance in technology infrastructure. With SLA Insurance for Data Centers, Lockton and Parametrix deliver a unique solution at the intersection of risk, capital, and digital resilience.
“As our data center clients seek more robust risk management solutions, this offering provides a level of protection not currently available in the insurance marketplace,” said Trevor Smith, Senior Vice President and Global Technology Risk Practice Managing Director at Lockton. “Through this facility, our clients benefit from access to Lockton’s top-tier data center risk experts, combined with Parametrix’s comprehensive support to accurately assess risk and ensure fast, transparent claims payments.”
About Lockton
What makes Lockton stand apart is also what makes us better: independence. Lockton's private ownership empowers its 13,000+ Associates doing business in more than 155+ countries to focus solely on clients' risk and insurance needs. With expertise that reaches around the globe, Lockton delivers the deep understanding needed to accomplish remarkable results. For more information, visit www.lockton.com. (opens a new window)
About Parametrix
Parametrix, the leading provider of digital business interruption solutions, specializes in parametric insurance that protects against financial losses from technology downtime. Leveraging a proprietary network of monitoring systems, we collect and analyze real-time, granular data on the performance and availability of digital services to accurately assess risk and deliver fast, transparent claims payments. Our solutions enable businesses and (re)insurers to quantify, manage, and transfer the financial risks of technology downtime with precision. Parametrix is a Managing General Agent and Lloyd’s Coverholder, with policies backed by major A-rated global insurers, and is headquartered in New York.