Zurich launches first-of-its-kind Builders Risk data center solution

Zurich North America, a trusted leader in construction risk, today announced the launch of Data Center Project Guard, a first-of-its-kind offering that both broadens and customizes Zurich’s award-winning Builders Risk coverage to address coverage gaps and unique loss drivers for data centers, a segment experiencing rapid growth propelled by AI, cloud computing and hyperscale builds.

Data center investment surged 92% year-over-year to $32.9 billion in November 2025, according to ConstructConnect’s Data Center Report. Global data center investments are projected to reach $6.7 trillion by 2030, according to McKinsey. These trends make the need for risk innovation in the space clear.

Zurich has extensive data center experience

Zurich has insured more than 250 data center projects across 20+ states. Data Center Project Guard harnesses this experience to deliver specialized coverages for hyperscalers, contractors and developers building next-generation digital infrastructure.

“Zurich has insured over $350 billion in data center projects, and our early, extensive leadership in this space positions us to set a new standard for insuring next-gen digital infrastructure,” said Kelly Kinzer, President of U.S. Specialties and, as of Jan. 1, 2026, the Group Head of Construction and Surety for Zurich Insurance globally. “Data Center Project Guard is experience-based and purpose-built to support the unprecedented pace and scale of infrastructure development to power the digital economy.”

Among other features, Data Center Project Guard adds up to 12 months of operational property coverage to bridge coverage gaps that can result from phased handovers. Parametric coverages, triggered by weather-related delays, are automatically included for the first year of construction. Data Center Project Guard also addresses failure of climate control systems, a key risk because of servers and other humidity-sensitive equipment.

“We’re not only offering considerable lead capacity for data centers, we’re also drawing from our underwriting, risk engineering and claims expertise to help our customers address loss drivers we’ve seen, like wind, hail and hot-works-driven fires,” said U.S. Head of Construction Tobias Cushing. “We’re coming forward with a solution that simplifies complex coverage needs and helps protect these massive capital investments, with features designed to help avoid delays and defuse potential disputes between owners and general contractors.”

Coverages go beyond typical Builders Risk

Data centers are growing larger, often spanning millions of square feet and housing thousands of servers with complex power requirements. As investment capital pours in, accelerated timelines for construction can heighten exposure to risks including supply chain disruption and severe weather, which Zurich claims data indicates is a leading cause of loss in the space.

“From modular builds to GPU-driven heat loads and remote locations with limited fire protection, Data Center Project Guard has factored in these risk dynamics,” said Patrick McBride, Head of Construction Property for Zurich North America. “We offer an innovative, robust solution that goes beyond typical Builders Risk coverages, streamlined within one policy jacket.”

Data Center Project Guard is a holistic offering designed to address special logistical and environmental exposures these projects present. Some highlights:

• Builders Risk: Adds limits for climate control system failure, losses at a supplier’s location, during transit, or at off-site storage and assembly locations. Data Center Project Guard can also integrate seamlessly with an early works policy placed prior to vertical construction.  
• Operational coverage: Up to 12 months of property coverage post-construction can include business interruption, miscellaneous personal property coverage, and impounded water coverage, which helps provide an alternative if the main water supply is disrupted.
• Weather parametric: Automatic inclusion for the first year of construction covers specified non-physical damage delays associated with the most common extreme weather events, with an option to add two new worker-protection perils: heat index and air quality.

Risk engineers provide valuable insights

Beyond coverage, Data Center Project Guard integrates renowned risk advisory services. Nearly 100 construction risk engineers across the country bring hands-on experience and knowledge gained from working with some of the world’s top data center operators.

“Our risk engineers provide advisory services from the earliest design stages through construction and into full operations,” said Arooran Sivasubramaniam, Head of Zurich Resilience Solutions. “Drawing on deep knowledge of data center projects and the most consequential risks, our team helps spot potential issues early and offers practical solutions to keep these complex, high-value projects safe and on track."

Data Center Project Guard is available for new projects in the U.S. beginning Jan. 1, 2026, on a project-specific, non-admitted basis. In addition to Data Center Project Guard, Zurich offers a full suite of solutions for data center construction, including Casualty and Professional Liability coverages and Contract Surety bonds.

Zurich in the U.S. has been a leader in construction insurance and risk management solutions for over 25 years. It was one of the first large commercial insurance providers to establish a dedicated construction practice. Zurich Construction won the 2025 Business Insurance Insurer Team of the Year award for its Builders Risk capabilities.

Learn more about Zurich Construction solutions.

About Zurich North America