Parametrix, a provider of technology downtime insurance, has launched Parametrix CDN Downtime Insurance to protect businesses from network outages.
The company said this is a “first-of-its-kind” insurance coverage, which will protect businesses from the financial fallout of third-party content delivery network (CDN) outages, hence securing cash flow to fix any damages after a business’s main sales and communication channel is down.
The company explained that while there are cyber, errors and omissions and other policies covering business interruptions, they carry long waiting periods, big deductibles and an arduous claims process. Whereas Parametrix CDN Downtime Insurance offers parametric coverage, the nature of which means payouts are pre-assessed.
Therefore, when the policy is triggered, payouts are fast, waiting periods are short, there are no cash deductibles and no long, tedious claims process.
Furthermore,Parametrix said this type of coverage is especially important for digital native companies with online presence, content and transactions such as e-commerce, travel, e-mobility, media, healthcare and FinTech companies.
“For online retailers, websites are critical sales channels, and CDN downtime renders that channel useless. For FinTech companies, their website is their platform for real-time transactions, so when a CDN goes down, their users can’t transact. In all cases, downtime also tarnishes brand reputation and can lead to loss of customer trust,” the company said.
Yonatan Hatzor, co-founder and CEO, Parametrix, added, “Global businesses rely heavily on third-party content delivery networks, which exposes them to CDN downtime risks that they need to mitigate with a plan providing necessary cash flow for business continuity.
“This and all Parametrix products showcase our ability to monitor performance and availability of global systems, model and quantify risk, and translate our knowledge into coverage with the trust and backing of major insurers and reinsurers.”
Earlier this year, Parametrix Insurance partnered with IMA Financial Group (IMA), a North American insurance brokerage firm specialising in risk management, insurance, wholesale brokerage and wealth management.
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