Global computer failure tests corporate cyber insurance

An unprecedented global computer failure has tested the effectiveness of cyber insurance in companies from various sectors, such as airlines, which were affected last Friday. This incident, caused by a faulty update in Microsoft's Windows operating systems from an antivirus program by the American cybersecurity group CrowdStrike Falcon, does not appear to be the result of an intentional cyber attack, but rather an unintentional error. In light of this situation, uncertainty arises as to whether the affected companies will be able to rely on their cyber insurance to cover the costs resulting from this computer failure. According to several experts consulted, cyber insurance policies are not necessarily designed to be applied in cases like this, although it will depend on the specific clauses of each contract. Although cyber insurance coverages vary according to each policy, they are generally focused on covering the risks and costs associated with cyber attacks. However, there are additional options that could consider computer failures as part of the covered losses, although these options are usually uncommon and companies do not typically purchase them. In the case of affected airlines, such as Transavia France, Delta, United, and American Airlines, as well as the British railway operator Govia Thameslink Railway, they are facing the need to cover additional operating costs resulting from flight cancellations and possible delays. Insurance could cover expenses for the restoration and relocation of affected passengers, but business interruption losses may not be fully covered. On the other hand, cyber insurance policies often have high costs, with significant deductibles that companies must bear before receiving compensation. In addition, contracts also establish maximum coverage limits, which could leave companies exposed to having to face significant economic costs, especially in cases of serious incidents like the global computer failure on Friday. In response to this situation, affected companies are evaluating their contractual options with the IT service providers that experienced failures. Contracts between both parties may include liability clauses that provide for compensation in case of service interruption, which could open the possibility of claims for damages. In this regard, a wave of claims is expected from affected companies, given the scope and potential financial consequences of the global computer failure. As responsibilities are clarified and damages are assessed, it will be crucial to determine to what extent cyber insurance can provide protection in crisis situations like the one experienced last Friday, which has tested the resilience and preparedness of companies in the face of unexpected events in the digital environment.