{"id":10001,"date":"2024-07-19T17:59:24","date_gmt":"2024-07-19T22:59:24","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&p=10001"},"modified":"2024-07-19T18:18:49","modified_gmt":"2024-07-19T23:18:49","slug":"global-it-outage-and-potential-insurance-risk-considerations","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/global-it-outage-and-potential-insurance-risk-considerations\/","title":{"rendered":"Global IT Outage and Potential Insurance Risk Considerations"},"content":{"rendered":"

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Cyber Insights<\/p>\n

\n Global IT Outage and Potential Insurance Risk Considerations\n <\/h1>\n\t\n <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″]\n
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\n Global IT Outage and Potential Insurance Risk Considerations\n <\/h1>\n\t\n <\/div>[vc_column_text]Today\u2019s outage caused by a defect in CrowdStrike\u2019s Falcon update that ultimately resulted in major IT outages has caused havoc on businesses across the globe. It has also caused the cyber insurance market to scramble as they assess exposures and aggregation of potential loss.\u00a0 The incident is possibly the largest single network outage ever, even more widespread than NotPetya in 2017.<\/p>\n

Between contractual agreements, Tech E&O exposure and Cyber insurance policies, this represents precisely the type of widespread, systemic risk insurers and reinsurers underwriting the risks of technology are most concerned about; one event or failure having a cascading impact on their insureds.\u00a0 At this point, cyber insurers are assessing the degree of claims and, we expect, are quantifying their exposure, which might trigger a re-evaluation of wording to address widespread events, system failures, single points of failure, business interruption and contingent business interruption.\u00a0Here are some of the things that have been disclosed at this point:<\/p>\n

Below are some critical updates published by CrowdStrike:<\/p>\n

What Happened?\u00a0 Is this a Cyber attack?<\/strong><\/p>\n

This event is\u00a0not<\/u><\/strong>\u00a0a cyber attack. It is a technology disruption incident related to a software update.<\/p>\n

What Caused the Incident?<\/strong><\/p>\n

The outage was caused by a defect found in CrowdStrike\u2019s Falcon content update for Windows hosts.Mac and Linux hosts are not impacted. The magnitude of the outage is due to the widespread usage of the Microsoft Windows Operating System.<\/p>\n

Is the Incident Resolved?\u00a0<\/strong><\/p>\n

CrowdStrike has a solution, and organizations worldwide are in various stages of recovery. Reports are that organizations have found success in following the remediation guidance published by CrowdStrike. Organizations can refer to Crowdstrike and\/or Microsoft for specific remediation guidance or technical support.<\/p>\n

Read more updates from CrowdStrike regarding the situation at https:\/\/www.crowdstrike.com\/blog\/our-statement-on-todays-outage\/<\/a>.<\/p>\n

Whether this will be covered under your Cyber or Technology E&O policy depends on the breadth of coverage. Some of the questions to be raised include:<\/p>\n