Frequently Asked Questions

Companies of all sizes, across all industries that are using the cloud need cloud outage insurance. Parametrix’s policies ensure business continuity by protecting your company’s revenue stream during a downtime event. Parametrix cloud outage insurance is especially suited for companies that:

• Have mission critical business activities dependent on the cloud
• Have service-level agreements (SLAs) that are contingent on a level of uptime
• Would experience direct revenue losses, operational losses or other financial losses as a result of a cloud outage event

We cover downtime for the top three public cloud service providers: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). There is the option to extend coverage for Content Delivery Networks (CDNs) Cloudflare, Fastly, Akamai, and Cloudfront. Parametrix can offer customized coverages as well as white label products in specific territories. For more information, you can contact us.

Parametrix will work with you to help align the defined payout amount to the financial losses incurred. This will be based on your company size, industry and business type. We take into consideration revenue, gross profit, SLA liabilities, as well as seasonality and work hours that will suit your needs before you finalize your policy terms.

We provide coverage to any sized business, from SME to corporates. Contact us for more information.

Compensating customers for breaches of SLAs can be a significant expense resulting from downtime events. Our policies include coverage for such expenses, and we carefully consider them when customizing coverage to meet your business's specific needs.

Absolutely. Simply list all the services you wish to include when completing the coverage questionnaire, and we'll offer a quote for the combined package.

Your premium is determined through our comprehensive parametric modeling analysis, which considers various factors. These include the specifics of your company's cloud infrastructure, historical outage events, as well as the resilience and disaster recovery plans you have in place. Additionally, we take into account factors such as the type of services you use, the presence of redundancy between regions, the hourly coverage amount you select, the required waiting period, and more.

No, our policy offers coverage for a wide array of downtime causes, ranging from human errors and cyber events to hardware malfunctions, including physical perils like fires, storms, and hurricanes. We provide the most comprehensive coverage available. Specific terms and exclusions are outlined in the policy that may be issued to you; a specimen policy wording can be found here.

Our policies fill a crucial gap in the insurance landscape by complementing your current coverage. They are available as standalone policies or as add-ons to cyber or business interruption policies.

Your policy can scale up as quickly as your business does. You have the flexibility to increase your coverage at any time, update your insured infrastructure, and add new cloud regions and services. Simply contact us or your broker to update these details.

Cloud providers may offer credits for downtime events, acknowledging the service disruptions. However, they typically do not compensate customers for the financial losses incurred due to these events. That's where we come in—to provide the compensation and coverage you need for such losses.

Currently, our coverage is exclusively available for businesses.

Downtime can stem from various causes, including internal factors or external issues unrelated to your cloud service provider. Our coverage is specifically designed for outage events involving the insured cloud provider.

If you suspect that your downtime is related to cloud service interruptions, please contact us or your broker immediately by email or phone (support@parametrixinsurance.com , +1 (888) 323-0032 ) and we’ll review and get back to you as soon as possible.

Following an insured outage event, you'll be required to sign a declaration of loss confirming the financial loss incurred due to the outage. Payment is then initiated without the need for further investigation or proof of loss.

There are no restrictions on how you can use the settlement payment. Whether it's for immediate operational costs, fulfilling SLA liabilities, implementing bounce-back solutions for your business, or any other purpose, the choice is yours. Our customers have utilized indemnification to cover direct revenue losses, compensate customers to prevent churn, manage unexpected PR expenses to repair brand reputation after a downtime event, and more.

We strive to process and pay every claim promptly. Our standard policy is to issue payment within 15 business days from the confirmation of the loss.

Whether you receive payment in this scenario depends on how your infrastructure and policy were structured. For instance, if the insured cloud infrastructure includes redundancy between regions and only one region experiences an outage, you may not be indemnified. We recommend reviewing your policy's terms and conditions, and if you are unsure, please contact us or your broker for clarification.

You can reinstate your coverage limit mid-term after a claim.

While cyber policies may include downtime coverage under their contingent business interruption (CBI) or dependent business interruption (DBI) coverage, they often come with waiting periods ranging from 8 to 24 hours or even longer. This leaves your clients exposed for an extended period without adequate coverage. Our policies offer low waiting periods, ensuring comprehensive coverage for specific and specified risks.

We offer cloud risk analysis for our clients during the underwriting process. This analysis helps both you and your client map their exposures and determine the coverage they may require. Contact us to speak with one of our experts and learn more.

Once you've selected the cloud service and coverage amount, we'll request that you complete a form with your company details and sign a non-binding policy. Our underwriting team will need to approve your company's details. After the underwriting process, which typically takes up to 2 business days, we will activate the policy and ask you to make the payment with a credit card or wire transfer.

Following an insured outage event, our standard procedure involves receiving a notification from Parametrix. Upon confirmation of the loss, the payout is initiated within 15 business days, subject to the terms and conditions of the policy issued.

We are a Lloyd’s Coverholder, and our policies are issued on Lloyd’s paper. Our products are backed by some of the largest insurers and reinsurers, including Hannover Re and certain underwriters at Lloyd’s of London including Tokio Marine Kiln and Apollo ibott.

Unlike most existing insurance products, which often exclude downtime incidents caused by cloud providers, Parametrix offers comprehensive coverage. Many other policies come with high deductibles, long waiting periods, complex claims adjustment processes, and various restrictions and exclusions. Parametrix, as a parametric insurance product, hedges cloud outage risk based on our proprietary monitoring technology, providing us with the most detailed service performance data available in the market. Our parametric model allows us to offer policies with no monetary deductibles or restrictions on the use of funds. This eliminates the need for lengthy and costly claims adjustment processes, as no investigation or proof of loss is required. Additionally, you can define the coverage amount and waiting period that best suit your business needs in advance.

Parametric insurance is a unique model that provides protection against losses that traditional insurers may find challenging to cover. These products are known for their transparency, reliability, and speed in claim payouts, without the need for lengthy claims processes, event investigations, or proof of loss. This approach saves time and valuable resources. To learn more about parametric insurance, read our blog post on the subject to learn more.

If you rely on the cloud, having cloud downtime insurance is crucial. While some cloud data centers may experience fewer outages than others, downtime can still occur, and its severity can vary. It's important to be prepared for downtime, as it is inevitable.

We are based in the US and offer policies in select territories, including the US and Israel. The availability, terms, and conditions of our products and services may vary depending on the jurisdiction.

If you need assistance or have any questions, please don't hesitate to contact us. You can reach us through our website or via email at support@parametrixinsurance.com. We are always ready to help and provide the support you need.