Insurers and brokers are currently evaluating the ramifications of a significant disruption linked to an update from US cybersecurity firm CrowdStrike, which occurred on Friday. The extent of insurance claims resulting from the incident remains unclear.
A representative from Marsh described the outage as a major event, stating, “The outage was international in scope and affected numerous sectors, making it a significant occurrence.” The spokesperson added, “At this point, it is premature to determine the full impact on the global cyber insurance market. We are assessing potential claims related to cyber insurance, cyber-contingent business interruption, and technology errors and omissions (E&O). Our team is actively working with clients to understand the specifics of their claims.”
It has been confirmed that the disruption was not the result of a malicious cyberattack but rather a “system outage,” which typically involves different insurance coverage considerations. “Coverage for system outages is contingent upon policy wording,” Marsh noted. “Since a system outage is not categorized as a security issue, there are specific nuances in coverage that vary.”
