How's your cloud insurance coverage?

• Position: CLOUD - Brief article

There is a big gap between the cloud computing insurance offered by conventional insurance companies and the risks presented by cloud computing, according to Eric Lowenstein, client manager with the financial services group of Aon, in Sydney.

"There is a broad range of cover options available but these have problems," he recently told ITPro. "What are the geographical exclusions in regard to data sent offshore? And there are uncertainties about the definition of networks. Do they include devices like iPads, laptops, etc.?"

Lowenstein stressed that this is not simply an IT issue. The cloud poses risks to many stakeholders --IT, marketing, legal, communications, and even the CFO and CEO --and they all need to be engaged.

A cloud computing insurance industry is emerging in the United States. Earlier this year, the MSPAlliance, an association of cloud service providers, announced a partnership with insurance broker Lockton that offers comprehensive protection for cloud and managed service providers around the world. MSPAlliance reportedly has been offering cloud coverage in Australia since...