Trigger Warning: Cyber Policy Wordings to Impact Coverage for Tech Outage
Insurance Journal
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Contributed by: Drex DeFord
Summary
The recent massive technology outage caused by an update from CrowdStrike has raised significant concerns across various industries and the cyber insurance sector. The incident, likened to the NotPetya attack, is expected to lead to substantial business interruption claims due to systems failure from non-malicious acts like human error. Insurers are now reexamining policy wordings and considering tightening their terms, especially around non-malicious events and the extent of business interruption coverage. The event underscores the need for insurers to assess policyholder supply-chain dependencies and manage potential aggregation risks without retracting essential coverage. The widespread impact highlights growing risks associated with single points of failure and the need for redundancy in critical systems.
