"If you are using dedicated servers, then you can probably get by without insurance but if you are colocating then you may be required to carry at least general liability, and most decent data centers want an umbrela policy on top of that."
Do most people agree with the above statement?? I am planning on getting a managed dedicated server and am thinking that my data center would be taking some of the liability since they own and maintain the servers.
Co-location generally means you place your equipment in some one's data center; and as such, your equipment should be insured not only for replacement but in the event your equipment causes damage to staff or other equipment.
In terms of dedicated servers, the provider is renting you their equipment; and therefore, they should provide such coverage.
I absolutely agree with that statement. Switch and Data (where we colocate) requires $1 million general liability plus an additional $1 million umbrela. It isn't not much fun finding an insurance provider, seems there are very few willing to take on the risk.
It is typical for co-location providers to require an insurance provision in their contracts.
This is also true for not only co-location space, but also if you lease physical office space as well. These clauses are common and sometimes they are even required by the landlord's own insurance company as a means of limiting the total exposure to loss.
CDGcommerce.com - Trusted Merchant Account Solutions since 1998
Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance. Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!