Terms and service requires use cover sas provider under $X mil insurance policy

The terms and service requirement is unique enough to be found if searched so I don't want to list them here.

But the terms require we carry at least several million in security and privacy liability. The real kicker as they also require they be covered under this policy and by name be listed as a loss payee.

This site doesn't even have a public facing component, and doesn't deal with anything high risk.

Has anyone heard of such a crazy requirement.

This was also added to the terms and service without notification (which is their right under our agreement)