Parametrix has launched a new embedded insurance program to protect against sustained systems outages triggered by security-service malfunctions. The insurance program will back a warranty offered by Endpoint Detection and Response (EDR) security providers to their premium customers. 

EDR systems continuously monitor the networked devices that people use to interface with technology. They search for cyber threats, and mitigate them when found. Because they are deeply embedded in mission-critical systems, a single malfunction like the one seen in the CrowdStrike event can instantly disable endpoints across an entire organization, bringing operations to a halt. While essential for cyber defense, their failure poses a systemic risk that can cascade through the entire business.

The program comes in direct response to the global CrowdStrike systems outage in July 2024. CrowdStrike shut down businesses worldwide, fueling the need for stronger action by digital suppliers to protect customers against future outage events.

This new embedded insurance product form Parametrix provides businesses with financial recompense when the tools meant to secure them become a source of failure. It is available only through select security vendors, and offers coverage of up to $2 million per client. Each client must have a minimum of 100 protected endpoints.

“Our mission is to build trust in technology through insurance - and that’s exactly why our partners have joined us: to help reinforce that trust with their customers,” said Jonathan Hatzor, CEO of Parametrix. “After last summer’s CrowdStrike event, many EDR clients were deeply concerned about the ability of endpoint security tools to unexpectedly shut down entire systems. Our coverage helps restore confidence in these services, reduces friction in SLA and contract negotiations, and ultimately supports our clients’ commercial goals. We’re proud to stand behind them.”

With this launch, Parametrix continues to lead the way in parametric insurance solutions that evolve with the digital risk landscape, offering fast, transparent, and relevant coverage for today’s most pressing operational risks.

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About Parametrix

Parametrix, the leading provider of digital business interruption risk solutions, is a Managing General Agent and Lloyd’s Coverholder based in New York that underwrites parametric insurance against digital supply chain interruption. Parametrix uses proprietary technology to continuously monitor the performance of a variety of third-party IT services across the globe, and to collect granular data on service interruptions. It uses that data to assess risk, provide instant insurance quotations, and to streamline claims payments, which are delivered within days. Parametrix policies are backed by major A-rated global insurers.