Cloudsurance is an optional insurance plan, soon to be available from Iron Orbit, that covers losses that occur as a result of downtime, data loss, and cyberattacks. Iron Orbit is currently planning to offer three different levels of Cloudsurance coverage: $1 million, $5 million, and $10 million. These plans will compensate you for all of the costs (up to your coverage limit, of course) directly associated with downtime or data loss incidents or security breaches, including the costs associated with:
Cloudsurance won’t be provided directly by Iron Orbit; rather, Iron Orbit will be making the service available in partnership with the company—also called Cloudsurance—that actually provides and manages these insurance plans. The cost (i.e., the premium) of your Cloudsurance will depend on the level of coverage you select, and will be included in the monthly, per-user cost of your Iron Orbit solution.
To receive compensation for the costs related to an IT disaster, you will need to submit a claim to Cloudsurance (the company) detailing your losses. Cloudsurance will then compensate you after confirming the legitimacy and accuracy of your claim, in a process Cloudsurance promises to make as quick, transparent, and fair as possible.
Cloudsurance won’t prevent IT disasters from happening in the first place, of course, but it will make it a lot easier to recover from them by eliminating or mitigating their costs.
If a weeklong outage resulted in $100,000 in lost productivity, sales, and customers for your business, for example, Cloudsurance would allow you to immediately recoup all of that lost revenue, which would in turn allow you to resume your normal day-to-day business operations. It could perhaps also allow you to acquire additional employees or equipment (or afford to pay existing employees overtime) to make up for all of the lost productivity, as well as give you the resources to coax back some of the lost customers or attract new clients to replace them.
If a weeklong outage resulted in $100,000 in lost productivity, sales, and customers for your business and you didn’t have Cloudsurance, meanwhile, you likely wouldn’t be able to return to normal day-to-day business operations immediately, and you might have to lay off employees, sell equipment, etc. in order to offset the loss. Even if your business survives the $100,000 loss, it won’t be the same as it was before the outage occurred—it’ll probably have less available capital, less employees, less assets, less customers, less revenue coming in, and a lower growth trajectory.
It should be noted that Iron Orbit isn’t planning to offer Cloudsurance because it’s any less secure or reliable than other cloud hosting companies (it’s actually one of the most secure and reliable) or because cloud computing itself is any less secure or reliable than traditional in-house IT (it’s actually more secure and reliable because cloud hosting companies can afford to implement more advanced security and downtime and data loss prevention measures than the average business).
IT disasters that result in costs of tens of thousands of dollars or more are rare—extremely rare in the case of a highly secure and reliable hosting company like Iron Orbit—but they still happen, even to organizations as large and well-funded as Target, Sony, and U.S. government agencies (which spend millions of dollars per year on IT security and business continuity planning measures), so you’re better off signing up for Cloudsurance and reducing your financial exposure than simply gambling that an IT disaster will never happen to you.
Iron Orbit expects to begin offering Cloudsurance with its solutions sometime in 2016. For more information about Cloudsurance, either the service or the company, check out www.cloudsurance.com.