Provider of parametric cloud downtime insurance, Parametrix Insurance and brokerage Leavitt Group have both announced that ComTech-Leavitt Insurance Services, a member of the two, has partnered to help businesses that use the cloud reduce their exposure to the risks of cloud downtime.
With the cloud turning into the alternative to traditional computing infrastructure, the International Data Corporation (IDC) forecasts total worldwide spending on cloud services will surpass $1.3 trillion by 2025.
This would result in a compound annual growth rate (CAGR) of 16.9%, however as businesses flock to the public cloud, they are more prone to exposure of potential failures and crashes.
Parametrix’s cloud downtime coverage will enable businesses to mitigate the risk of running their business on third-party clouds.
Similar to other parametric insurance products, businesses pre-agree on the amount of coverage needed and receive rapid payment of their policy within 15 business days when cloud outages occur.
Using this type of insurance means that there is no need to negotiate losses or file claims for damages.
With Parametrix’s cloud insurance, businesses are free to use payouts to cover any type of loss when downtime happens.
Joseph Weipert, Senior Vice President at ComTech-Leavitt commented: “ComTech-Leavitt works with our clients to help them understand the perils they face across their business.
“A growing dependency upon cloud applications is one the fastest growing risks they need to manage, and Parametrix Insurance enables them to cover the potential cost and expense of cloud downtime.
“Parametrix fills a real need for businesses. Today’s cyber policies have long waiting periods and multiple exclusions in their business interruption when the cloud goes down, and Parametrix fills that gap.”
Yonatan Hatzor, Co-founder and CEO of Parametrix Insurance added: “ComTech-Leavitt’s status as a trusted advisor to businesses means they are well positioned to help educate companies on the potential tangible and intangible losses that can result from cloud outages.
“Cloud downtime can inflict untold expense on companies that are unprepared. Downtime insurance offers a key way for businesses to recoup cloud downtime losses and fix the harm caused to their brand reputation by cloud outages.”
