Risk: The Failure of a Major Cloud Service Provider Could Cause a $15 Billion Economic Loss, Whack Insurers For $3 Billion—Lloyds/AIR

Not trusting cloud security I don't have first hand experience but I'm assuming the insurers of clouds have priced the product appropriately.

First up, Property Casualty 360, Feb. 5:

Top cloud service provider's failure could result in $3B in insured losses, report says
Businesses outside the Fortune 1000 would carry 63% of economic losses and 57% of insured losses — indicating that they are at the highest risk.

A new report from Lloyd’s and AIR Worldwide, analyzing the financial impact of the failure of a leading cloud provider in the United States for three to six days, concluded that it would result in economic losses of $15 billion and up to $3 billion in insured losses.

The report found that companies outside of the Fortune 1000 — which are more likely to use cloud provider services — would carry a larger share of the economic and insurance losses than Fortune 1000 companies. However, the biggest 1,000 companies in the United States still would carry 38% of economic losses.

Among other things, the report also found:

— Businesses outside the Fortune 1000 would carry 63% of economic losses and 57% of insured losses — indicating that they are at the highest risk.
— Fortune 1000 companies would carry 37% of economic losses and 43% of insured losses.
If a top cloud provider went down:
— Manufacturing would see direct economic losses of $8.6 billion;
— Wholesale and retail trade sectors would see economic losses of $3.6 billion;
— Information sectors would see economic losses of $847 million;
— Finance and insurance sectors would see economic losses of $447 million; and
— Transportation and warehousing sectors would see economic losses of $439 million....

...MORE 

And here's the press release from AIR Worldwide:

Failure of a top cloud service provider could cost US economy $15 billion