Frequently Asked Questions
Find out everything you need to know about our company, policies, downtime coverage and more.
Coverage
Companies that want to protect their revenue stream, ensure business continuity and bolster their brand. Business size doesn’t matter for this purpose. The only parameter is whether your company:
- Depends on third-party IT services for critical business activities
- Has SLA commitments that depend on the uptime of third-party IT services
- Will incur direct revenue losses due to downtime (for example, eCommerce or entertainment companies)
We cover downtime caused by a wide range of IT service providers including Cloud (AWS, Azure and GCP), eCommerce (Shopify), Content Delivery Networks (Cloudflare,Fastly, Akamai and Cloudfront) . We are constantly adding new services, so contact us if you’d need coverage for an IT service that we don’t offer yet.
During the sign-up process, our smart policy engine will estimate the amount of coverage you require based on your company size, industry and business type. You will then be able to easily adjust that number to precisely suit your needs before you finalize your policy terms.
You can get as much coverage as you need. Fill out a request for a quote with the amount you need, and we’ll get back to you within 24 hours.
Compensating customers for unmet commitment is an expense you may incur as a result of a downtime event. Our policies provide coverage for customer SLAs expenses. We take them into account when we help you calculate your required coverage amounts.
Yes. When you fill out the coverage questionnaire, add all the services you would like to have covered and we’ll provide a quote for the combined package.
We base our parametric modeling analysis on multiple factors. These include data you provide about your company and the IT services you use, as well as the highly granular performance and availability data we collect through our monitoring system. This allows us to provide the most affordable premium option. Parameters include your cloud provider, the type of services you use, whether you have redundancy between regions, the hourly coverage amount you select, the waiting period you need and more.
No. Our policy covers a wide range of downtime reasons, from human errors to cyber events to hardware malfunctions, including physical perils like fires, storms and hurricanes. If your provider is the target of a cyber attack and your insured cloud regions and services are impacted, you are covered. Exclusions include degradation of service, planned maintenance, government and regulatory action and war.
Our policies fill in a critical gap in the insurance space to complement your existing coverage. They are sold either as standalone policies, or as add-ons to cyber/BI policies.
Your policy can scale up as fast as you do so you can increase your coverage at any time. Whenever you add third-party IT services or update their details, please contact us and we’ll help you update your policy.
Providers might issue credits following downtime events due to the lack of service they promised to provide, but they don’t compensate their customers for financial losses.
At this time, our coverage is only available for businesses.
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If you need assistance at any time, please reach out to us. We are always happy to answer any questions you may have and provide any support you may need.
Claims
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If you need assistance at any time, please reach out to us. We are always happy to answer any questions you may have and provide any support you may need.
Once our monitoring system identifies a downtime event on one of the services you’ve insured, we’ll notify you. All you’ll need to do is sign a statement of loss and you’ll get indemnified within 15 business days.
Downtime can be due to internal reasons or external factors unrelated to your cloud service provider. We cover you for any outage event that stems from cloud downtime. If you have reason to believe your event is related to cloud downtime, please contact us immediately by email or phone (support@parametrixinsurance.com, +1-888-323-0032) and we’ll review and analyze the event.
There are no restrictions on how you use the settlement payment, whether for immediate operational costs, SLA liabilities, bounce back solutions for your business, or anything else. Our customers have used indemnification to cover direct revenue losses, compensating customers to prevent churn, unexpected PR spend to repair brand reputation after a downtime event, and more.
We do our best to pay every claim as soon as possible after the downtime event ends. We notify you of the event as soon as it occurs and you’ll receive payment within 15 business days (usually less).
This depends on how your infrastructure and policy were structured. If you have redundancy between the region that failed and others, and you can still work, then you will not be compensated. If you have no redundancies, then you’ll get indemnified per your policy terms.
Brokers
While cyber policies do include downtime coverage, it often mandates a 8-24 hours waiting period, sometimes even more. That leaves your clients exposed for too long without any chance of compensation. Our policies can have waiting periods as low as one hour, providing comprehensive coverage until your cyber policy can be activated. Learn more on our brokers page.
We provide free risk assessments so both you and your client understand how much an hour of downtime may cost them and how much coverage they need.
Schedule a call with one of our experts to learn more.
It couldn’t be simpler. We provide forms that are pre-filled with your client’s information, like the cloud services they use and their relevant financial information. You can adjust cloud information (regions, services), the waiting period (1,2,3 or more hours), the policy duration (10, 11, 12 hours) and your limit as needed, and then a policy will be automatically created in minutes.
When an insured downtime event occurs, both the broker and their customer(s) are notified. After verifying that a loss was incurred based on their sworn statement of loss, indemnification will occur within 15 business days.
The parametric nature of the product means damages are pre-assessed, so the customer does not need to prove any loss. Your clients will be asked to sign a statement of loss in order to be indemnified.
Couldn't find the answer you were looking for?
If you need assistance at any time, please reach out to us. We are always happy to answer any questions you may have and provide any support you may need.
General
Most existing insurance products don’t cover downtime incidents caused by external IT services. For those that do, their policies come with high deductibles, long waiting periods, complex claims adjustment processes and restrictive exclusions. Parametrix is a parametric insurance product that hedges external downtime risk for mission-critical services on the basis of our proprietary monitoring technology. It provides us with the most granular service performance data available in the market. The parametric model allows us to offer affordable policies with no monetary deductibles or restrictions. This eliminates the need for lengthy and costly claims adjustment processes. In addition, you can define the coverage amount and waiting period that make sense for your business.
Parametric insurance is a model that offers protection against losses that traditional insurers find difficult to cover. Parametric products are transparent, affordable and reliable, and ensure that claims are paid out fast without the need for a lengthy claims process. This saves time and valuable resources. Read our blog post on the subject to learn more.
Some providers may have fewer downtime incidents than others while some regions may be more prone to outages than others. But downtime happens across the board, and events have varying durations and severity levels. If you want to know when your provider’s latest incident happened, contact us and we’ll share our extensive database with you.
Our innovative policies are backed by some of the biggest insurers and reinsurers including Hannover Re, Tokio Marine Kiln and other underwriters at Lloyd’s of London.
We currently have offices in the US, UK, Germany and Israel. We also have a strategic partnership with SOMPO which covers the market in Japan. Our policies are available in the US, Germany, Austria, Italy, Israel and Japan.
If you need assistance at any time, please reach out to us, through our website or via email (info@parametrixinsurance.com.) We are always happy to answer any questions and provide any support you may need.