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Liberty Mutual warns builders’ risk may leave gaps on data center projects
The shift from builders’ risk to operational property can blur at phased openings, including when a loss affects one hall that is already operating and another still under construction.
Brokers handling large data center developments may need to line up insurance coverage earlier, because phased projects can make it unclear when builders’ risk ends and operational property coverage begins, according to Insurance Business.
The publication highlights that data center buildouts are getting larger, with JLL projecting global capacity near 200 gigawatts by 2030, up from about 2025, and the US representing roughly 90% of capacity in the Americas.
It noted that a loss crossing an area that is already operational and another still under construction could trigger builders’ risk and operational property policies or prompt disagreements over which insurer should respond, an issue that can create potential coverage gaps.
Liberty Mutual’s newly appointed North America construction team leader Amy Gross said the industry is starting to use solutions that add operational coverage through the transition period with the same carrier, and she also said clients are exploring captives and parametric products for specialized exposures, including weather events that could delay construction or tenant occupancy.