Tailor-made Tornado Insurance Cover for the Tech Industry

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The rising intensity of natural catastrophes around the world is increasing pressure on the prices and capacities of corporate insurance programs. In response, more corporate & public sector clients are turning to parametric insurance to cover their Nat Cat exposures.

Tornado, wind storm image

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Descartes is proud to consistently collaborate with our broker partners and clients in the market for parametric solutions. We work diligently with our brokers to offer existing and prospective clients competitive and reliable solutions.

For the tech industry, key operational assets now extend well beyond Silicon Valley

As the construction of data center infrastructure and cloud computing facilities continues to expand throughout North America’s ‘Tornado Alley’, so does the tech industry’s tornado exposure.

Tornadoes appear to be occurring in larger “clusters” in recent years, with about 1,200 annually. While there is a lot of uncertainty surrounding the trends around tornadoes, what is certain is that they can cause catastrophic damage.

A recent tornado outbreak from the Plains to the Northeast in March 2022 caused thousands of outages and an estimated $1.3 billion in damage; while another outbreak near Winterset, Iowa, was the deadliest in the state in more than a decade.

The rising intensity of severe convective storm activity is leading many traditional insurers to limit capacity or dramatically increase prices and exclusionary language. This leaves corporates across all industries in need of an alternative solution to protect their assets

With fresh capacity and client-customized coverage, parametric insurance products provide corporates in the tech industry with an unparalleled insurance solution.

Corporates in the tech industry opt for parametric insurance against severe convective storm exposure

case study example

A technology company was looking to cover assets essential to their operations located in a heavily tornado prone part of the country, and were unable to find affordable options in the traditional market.


The client had forgone traditional Business Interruption coverage due to the high cost and inability to secure the necessary capacity needed for their property.

The high value of the client's assets meant they were looking for a substantial capacity deployment in the range of $50-$100 million, automatically excluding most available markets and made pricing difficult.


To address the client's business interruption needs, Descartes created a structure that would begin to payout at a lower intensity tornado event. 

Descartes was able to deliver a tailor-made tornado policy solution at the full desired limit to comprehensively protect the client's assets and business continuity plans all within their allotted budget.

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