The recent CrowdStrike outage has left many wondering about the full extent of its impact on the cyber liability insurance market. Consider this: “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. To help you understand the developing situation, we surveyed some of the early reporting and reactions to gauge the impact on the cyber insurance market.
CrowdStrike Falcon Sensor Update Triggers Global IT System Outage
Source: CyberCube
A faulty update to CrowdStrike’s Falcon Sensor, known as the CrowdOut Event, caused widespread IT system outages, affecting various Windows operating systems. CyberCube is advising clients on using SPoF Intelligence to identify affected insureds. The update’s defective kernel driver led to global system crashes, resulting in the “Blue Screen of Death” (BSoD). The outage impacted companies using CrowdStrike’s Falcon software, including financial institutions, healthcare providers, and transportation networks.
CrowdStrike Outage Costs Economy Tens of Billions, Firms Seek Insurance Compensation
Source: South China Morning Post
CrowdStrike’s recent outage has cost the global economy tens of billions of dollars. The incident disrupted numerous industries, grounding flights, causing delivery delays, and leading to the closure of stores and amusement parks. Nir Perry, CEO of Cyberwrite, estimates the economic damages could reach tens of billions. Affected firms are now seeking compensation through their insurance providers, with over 75 Marsh clients preparing to file claims. Large companies may recover damages directly from CrowdStrike if they negotiated specific terms.
CrowdStrike Outage Highlights Need for Cybersecurity in Law Firms
Source: LawFuel
The global IT outage caused by a CrowdStrike security update has emphasized the critical importance of cybersecurity for law firms. The disruption affected operations at several law firms, hindering access to internal documents and email systems. Reed Smith quickly mobilized its US operations, restoring normal functions before the East Coast business day began. Experts expect the incident to trigger numerous business interruption claims, which will test the resilience of cyber underwriters like Beazley. They advise law firms to review their cyber insurance policies to ensure coverage for such incidents.
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