Compute default protection
Compute default protection is insurance that pays up to a year of missed payments in a qualifying offtake interruption, breathing room to find a new offtaker.
How it works
An annual policy. Compute default protection is annual insurance with terms tailored to the offtake agreement.
Up to a year of breathing room. In a qualifying offtake interruption, the policy pays up to a year of missed payments, the time to collect or to sign a new offtaker. The non-payment notice under the offtake contract usually starts a 30-45 day cure period (GPU loan default playbook).
Not every departure qualifies. The policy sets the triggers, limits and exclusions, and pricing depends on the offtaker and the offtake agreement.
What lenders check
It answers the question property cover cannot. Business interruption insurance pays only after insured physical damage, so an offtaker that runs out of cash or walks is not a property claim (which insurers cover AI infrastructure).
It sits next to the structural protections, not in place of them: a controlled account, no termination for convenience, prepayment or a letter of credit.
Book a call
Send us the equipment list and the loan or lease you have in mind. We will come back with a proposed scope and the questions we would need answered.
Prefer email? hello@amcompute.com
Questions
- Is compute default protection the same as business interruption insurance?
- No. Business interruption pays when insured damage stops the cluster. Compute default protection responds to a qualifying offtake interruption, such as a customer that stops paying.
- Is it trade credit insurance?
- No. Trade credit insurance covers a seller’s receivables from named buyers. Compute default protection is insurance written around one offtake agreement. It is contractual liability insurance, not a financial guarantee.