[AusNOG] Inergen Release and Insurance Coverage

[Jacob Kino]

Hi Joshua,

Yes, we're trying to ask if they will make that endorsement/extension, but at the end of the day, you can't think of every possible scenario and ask for that to be incorporated. I would think it's not unreasonable to rely on a reasonable degree of cover for reasonable foreseeable eventualities based on the type of cover (in this case equipment in a DC).

I'm not clear why it's not covered as 'accidental damage' but we're seeking clarification.

In terms of shifting liability to the DC provider, I think you'd find their liability is fairly limited in most MSA's, and in any case you'd still have to actually get them to pay out which as you say, may involve legal proceedings.

We had a situation recently with another DC provider that accepted a mangled box with a $100k storage array in it - we'd booked the delivery, so they accepted it, despite the 'tip n' tell' being broken. As a result neither theDC provider nor the carrier would accept liability and despite having a marine transit insurance policy in place (did I mention I I was paranoid) it wasn't covered because the vendor (unbeknownst to us ) had shipped it direct from the US and our coverage was Australia only (and we couldn't prove where or how it happened).

Luckily the vendor (eventually) replaced it as a gesture of good faith, but it certainly demonstrates how careful you need to be in terms of managing liability. I was hoping someone would know of a true IT insurance specialist - I've seen many claim it but so far haven't really been impressed.

Cheers,

Jacob

From: Joshua D'Alton [mailto:joshua at railgun.com.au]
Sent: Tuesday, 15 April 2014 4:34 PM
To: Jacob Kino
Cc: AusNOG at lists.ausnog.net
Subject: Re: [AusNOG] Inergen Release and Insurance Coverage

Surely they would be able to tailor the insurance to meet your needs?

Otherwise, is it not a case of 'chasing' (read: suing) GS and having their insurance payout?

On Tue, Apr 15, 2014 at 4:11 PM, Jacob Kino <jacob at interconnekt.com.au<mailto:jacob at interconnekt.com.au>> wrote:
Hi All,

I followed with interest the discussion some months back about a fire suppression system malfunction at Global Switch causing damage to hard drives.

Someone raised the issue of insurance and liability - I didn't see a response, and being the paranoid person I am, decided to investigate further.

After an uncomfortable conversation with my broker about inadvertent gas release (heh) he chased it up with our insurer/underwriter - a major one.

"From my discussions with XXX Insurance it has been determined that should a fire trigger the gas suppression system at an insured third party data centre which causes damage to your contents then your policy will respond."

"Should there be damage sustained due to say a fault in the suppression system, then there will be no cover."

We are currently evaluating whether the policy can be endorsed/extended to include cover for this scenario, otherwise I think we will switch insurers - I just don't feel comfortable working with Murphy's Insurance any more.

If anyone has any insight into specialist or knowledgeable insurers, would be great to hear on or off-list.

Cheers,

Jacob

Jacob Kino

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e-mail     jacob at interconnekt.com.au<mailto:jacob at interconnekt.com.au>
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