A normal business insurance policy covers losses to your business due to your own accidental actions, or an employee's willful illegal action, but generally doe

A normal business insurance policy covers losses to your business due to your own accidental actions, or an employee's willful illegal action, but generally does not cover a loss due to a contracted service not performing properly. So the cloud-service company might have it covered for their own losses, but not for their customers. And a company the size of Amazon or Google probably doesn't actually buy business insurance; they are larger than many insurance companies and will find it cheaper to just accept most losses in their current regulatory regime.