Insurers face business interruption claims after global tech outage
By Noor Zainab Hussain
July 19 (Reuters) -Insurers could face a raft of business interruption claims after a worldwide tech outage crippled industries from travel to finance on Friday, insurance industry experts said.
A software update by global cybersecurity firm CrowdStrike CRWD.O appeared to have triggered systems problems that grounded flights, forced some broadcasters off air and left customers without access to services such as healthcare or banking.
"Insurers are bracing for hundreds, if not thousands, of claim notifications from organizations that are impacted by the CrowdStrike event," said Ryan Griffin, a partner focused on cyber at insurance broker McGill and Partners.
However, not all businesses would get insurance cover for their lost time and money.
A typical business interruption policy within a regular commercial insurance program would not provide coverage against losses stemming from Friday's outage, said Marcos Alvarez, head of insurance at ratings agency DBRS Morningstar.
And not every cyber insurance policy likely has coverage for business interruption; such coverage would have to be bought separately at extra cost.
"Some cyber insurance policies exclude non-malicious events, and there are waiting periods and deductibles that businesses will have to consider before making a claim with their insurance carriers," said Nir Perry, CEO at CyberWrite, a cyber insurance risk platform.
Perry said economic damages could reach tens of billions of dollars in such events, and added the outage should be considered an example of an "event that can produce what could be defined as an insurance catastrophe."
The event could also bring with it legal claims for CrowdStrike and Microsoft MSFT.O. A defective update by CrowdStrike, designed to protect Microsoft Windows systems, triggered the global IT outage.
CrowdStrike and Microsoft did not immediately respond to requests for comment.
"Airlines (and other industries) might have rights under their contracts that allow them financial or other remuneration based on the CrowdStrike outage," said Sam Levine, senior vice president - professional and cyber solutions at specialty insurance broker CAC.
The outage caused major issues for travelers around the world – grounding planes for hours.
Travel insurer InsureMyTrip said it anticipates an increase in travel insurance claims, with the most from travel delay and missed connection policies. More than 1,600 customers may be impacted as they depart for or return from trips on Friday, it said.
Industry experts also said that force majeure would not apply for the event.
Force majeure clauses in contracts remove liability for unforeseeable and unavoidable catastrophes that prevent participants from fulfilling obligations.
"This is exactly what cyber insurance is meant to cover. ... This is not something that is outside of our control," said Meredith Schnur, U.S. and Canada cyber practice leader at broker Marsh.
Reporting by Noor Zainab Hussain in Bengaluru; additional reporting by Nathan Gomes and Akash Sriram; Editing by Leslie Adler
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
