Phased powered-shell construction
Completion, acceptance, occupancy, partial use, testing, commissioning, and cessation-of-work terms should track the phased build and tenant schedule.
Data center & AI infrastructure risk
Data center projects need insurance architecture built around phased construction, precision equipment, uptime, and contract risk.
Rothberg Specialty provides risk consultation and program-placement support for owners, developers, general contractors, tenants, and operators.
A different risk profile
A data center is not simply a commercial building with servers inside.
Construction, commissioning, live operations, utility dependency, sensitive equipment, delegated design, cyber exposure, and contractual performance standards can overlap on the same site.
Phased completion and occupancyOne hall may be energized and operating while construction continues elsewhere. Builder’s risk completion, occupancy, testing, and handoff provisions must match the actual schedule.
Precision systems and cascading lossCooling, switchgear, UPS systems, generators, batteries, controls, and commissioning failures can produce both physical damage and substantial economic loss.
High-value property in another party’s careRacks, hardware, owner-furnished equipment, stored components, and tenant property require careful analysis of property coverage and CGL care, custody, or control exclusions.
Uptime and service obligationsPerformance standards, service-level agreements, liquidated damages, warranties, and delay costs may exceed what traditional property and liability policies were designed to cover.
Utility and supply-chain dependencePower, water, fiber, equipment lead times, specialized contractors, and overseas components can create interruption and delay exposures far beyond the site boundary.
Six risk dimensions
Map the exposure before the contract or policy decides it for you.
The actual solution depends on jurisdiction, delivery method, contract terms, project phase, ownership, operations, and insurer wording.
Defective-work cascade
Faulty workmanship exclusions, ensuing-loss language, design responsibility, rectification, and damage to other work can determine how a precision-system failure responds.
Equipment and property control
Owner-furnished, tenant, stored, installed, testing, transit, and care/custody/control exposures should be assigned intentionally across property and liability policies.
Performance and economic loss
Professional liability, technology E&O, delay, business interruption, contractual liability, warranty, and liquidated-damage exposure require separate analysis.
Battery and energy systems
Thermal runaway, fire protection, testing, commissioning, environmental response, stored energy, backup generation, and business interruption deserve specific underwriting treatment.
Cyber and operational resilience
Network security, operational technology, tenant data, system failure, contingent business interruption, vendor incidents, and evolving exclusions must be coordinated.
Coverage-gap matrix
Where the questions usually sit.
This is a discussion framework, not a statement that every policy contains the same exclusion or that every listed modification is available.
| Coverage | Primary concern | Common review question | Potential response |
|---|---|---|---|
| Builder’s risk | Phased completion, testing, stored equipment, defective work | When does coverage end for each phase, and how does ensuing loss apply? | Phased-occupancy wording, testing terms, stored-equipment limits, delay analysis |
| Commercial general liability | Ongoing work, completed operations, high-value equipment | How do property-in-control, damage-to-work, electronic-data, and project exclusions apply? | Contract and endorsement review, project-specific or wrap structure, excess coordination |
| Professional / technology E&O | Delegated design, system performance, economic loss | Does “professional services” match the design, integration, commissioning, and technology obligations? | Broader service definition, subcontractor flow-down, rectification or mitigation options |
| Delay / business interruption | Power, supply chain, commissioning, service interruption | What trigger is required and which utility, contingent, or off-premises dependencies are excluded? | Delay sizing, utility-services review, contingent coverage, extended-period analysis |
| Cyber | Network, operational technology, third-party data, system failure | Do exclusions, sublimits, waiting periods, and vendor conditions match the operating model? | Standalone cyber, technology E&O coordination, incident-response planning |
| OCIP / CCIP / SDI | Enrollment, limits, exclusions, subcontractor failure | What coverage do enrolled parties lose under corporate policies, and is the project tower adequate? | Pre-enrollment review, limit modeling, exclusion negotiation, default-risk layering |
Who we serve
Different parties carry different parts of the same project risk.
GC
General contractors
Prime-contract obligations, wraps, subcontractor risk transfer, delegated design, completed operations, warranties, liquidated damages, equipment in control, and excess limits.
Discuss a project →O
Owners & developers
Builder’s risk, owner’s interest, delay, financing, design, environmental, operational handoff, tenant obligations, catastrophe, and long-term property programs.
Discuss an owner program →T
Tenants & operators
Hardware and tenant property, installation, business interruption, cyber, technology E&O, contractual performance, dependent properties, and operational resilience.
Discuss operational risk →Advisory and placement services
Consultation first. Placement when the engagement and markets support it.
Scope, deliverables, compensation, licensing, and conflicts should be documented before work begins.
01
Pre-construction risk map
Map project phases, parties, contracts, assets, values, design duties, commissioning, utilities, schedule, and intended coverage responsibilities.
02
Coverage gap audit
Review current or proposed policies against the actual construction and operating model, with identified questions and priority issues.
03
Contract-to-coverage alignment
Compare insurance obligations and risk allocation with the contemplated program while preserving counsel’s responsibility for legal interpretation.
04
Program design and placement
Structure and market builder’s risk, liability, wrap, professional, cyber, pollution, delay, property, and excess options subject to availability.
05
Subjectivity and closeout management
Track information, endorsements, contracts, enrollment, audits, values, testing, occupancy, and policy-transition requirements.
06
Claim and coverage coordination
Support prompt notice, document assembly, coverage communication, carrier coordination, and collaboration with the insured’s counsel and experts.
Start with the project facts
Bring the schedule, contracts, coverage, and questions.
A useful initial consultation does not require a perfect file, but it benefits from a clear picture of the project and where the uncertainty sits.
Project and parties
- Location and jurisdiction
- Owner, developer, GC, tenants, and key trades
- Delivery method and contract structure
- Phasing, energization, commissioning, and occupancy
- Values, schedule, and financing milestones
Insurance and risk documents
- Prime contract and insurance exhibit
- Leases, service-level agreements, or owner requirements
- Current and proposed policies
- Builder’s risk and wrap specifications
- Known exceptions, subjectivities, and open claims
Data center FAQs
Questions to answer before energization.
Does builder’s risk automatically continue through phased occupancy?
Not necessarily. Completion, occupancy, acceptance, testing, partial use, cessation, and handoff wording must be compared with the actual schedule and carrier approvals.
Will CGL cover damage to servers or owner-furnished equipment?
It depends on ownership, possession, work scope, facts, and exclusions such as care, custody, or control and damage to property or work. Dedicated property, installation, builder’s risk, or other solutions may be required.
Are liquidated damages insurable?
Coverage varies and many contractual penalties or performance obligations may not be covered. The contract, jurisdiction, policy wording, causation, and underlying event must be analyzed with insurance and legal professionals.
Can Rothberg provide legal opinions on contract language?
No. Rothberg can identify insurance implications and coverage alignment questions. Legal interpretation and contract drafting belong to qualified counsel.
Is every engagement tied to placing insurance?
The scope can be advisory or placement-oriented depending on the client, jurisdiction, licensing, compensation agreement, and project need.
Map the gap before the project energizes.
Share the project location, phase, parties, current coverage, and the contract or operational issue that needs a clearer insurance response.