Companies looking to get insured against cloud computing outages now have a new option. The MSP Alliance, a trade group representing cloud computing providers, is launching a cloud computing insurance policy. The policy is aimed at companies offering cloud services to third parties, and is intended to protect them against damages caused by service outages or data leaks from hacker attacks.
The new insurance product is the latest entry into a crowded category. Companies that depend on cloud services from Amazon, Dropbox, Salesforce, and others are being courted by insurance companies. Data breaches from cloud systems and cloud outages are a serious problem; a 2011 Amazon Web Services incident caused by a megastorm in northern Virginia crippled a significant portion of commercial web traffic in North America.