Cloud Insurance, Why it makes sense

I've been working for and with maybe the first company that is dealing with Cloud Insurance. It is an interesting idea, and definitely makes sense if you are a large enterprise that has recently moved your date or applications to the cloud. Say you save 100,000 USD by moving to the cloud, perhaps it would make sense to take out 20,000 of insurance on your cloud deployment. This way if the cloud goes down and your business is harmed, then atleast you get a payout to perhaps offset the financial hit of the downtime. When your servers go down, or you are responsible for downtime in your own data center, there is no money back or insurance as it is your own fault.

Also as a cloud provider of IaaS, PaaS, and/or SaaS, it makes sense to insure your cloud. Downtime and outages will happen. Perhaps they will be covered by your SLA, but unforseen things can happen. What happens when there is a 0-Day exploit in the hypervisor you are using and customer data leaks. You may prone to lawsuites even if it is covered in the SLA. Big data spills can cost lots of money in repuation and liabilities, how many millions do most cloud providers have lying around to settle cases with the government and companies?

There is a lot of risk out there, that is where cloud insurance by CloudInsure comes in to mitigate that risk.