The recent CrowdStrike IT outage sent ripples worldwide, underlining the critical nature of cybersecurity and the far-reaching consequences of technological disruptions. On July 18, 2024, a faulty update to CrowdStrike’s Falcon system resulted in widespread IT issues (including the infamous “blue screen of death” for many Windows users), affecting approximately 8.5 million devices globally. The outage caused major headaches across healthcare, aviation, retail, and beyond. Businesses reliant on CrowdStrike’s cybersecurity services scrambled to manage the chaos, faced with operational downtime, revenue losses, and additional remediation costs.
As CrowdStrike grapples with the aftermath, a wave of insurance claims is on the horizon, with the potential total expected to exceed $1 billion. Business interruption and cyber insurance coverage are in sharp focus, revealing their vulnerabilities. Not all business interruption policies cover losses from non-malicious incidents like software faults, a gap in coverage that has left many businesses at risk.
Cyber insurance policies have also been under the microscope. While these policies typically cover losses from cyberattacks and data breaches, coverage for non-malicious events like the CrowdStrike failure can vary significantly. This is a critical moment to advise your clients to conduct a comprehensive review of their existing cyber insurance policies to fully understand their coverage limits and exclusions. As industry experts suggest, prompt notification to insurers and detailed documentation are crucial steps in maximizing insurance recoveries.
Keep Business Running with Jencap
Start your outreach now if you have clients without business interruption or cyber insurance coverage. As illustrated by the CrowdStrike outage, these breaches can affect almost any business. Look across industry sectors and connect with your network to ensure they’re prepared for and protected against these modern threats.
At Jencap, our Professional Lines team will navigate the unique and ever-changing intricacies of cyber insurance, ensuring that your clients’ policies are tailored to address both malicious and non-malicious events. Contact us today to learn more!
