New Zealand businesses are being advised to dust off their cyber insurance policies and check they’re fit for purpose following the weekend chaos caused by the CrowdStrike global IT outage.
A faulty update by US cyber security firm CrowdStrike caused disruptions for 8.5 million Windows devices around the globe. It halted flight, and disrupted retailers, banking and healthcare systems.
While the outage was caused by an error rather than a malicious attack, the Insurance Brokers Association of New Zealand (IBANZ) says it’s a timely reminder to business owners to check their cyber cover.
“While the fact this event was the result of an error rather than an attack means it’s unlikely to be considered an insurable event under most policies, experts are warning business are at increased risk of cyber-attacks while systems are being fully patched – and there’s no doubt cyber criminals will be seeking to take advantage of that,” says Mel Gorham, CEO of IBANZ.
“Business owners should make sure they understand what is covered in the event of a malicious attack and, if necessary, talk to their insurance broker to check their policy still meets their business’ specific needs. If a business doesn’t have cyber insurance, the owner should be talking to a broker about policy options and consider getting cover in place.”
In a statement issued to its customers, Microsoft says, “It’s also a reminder of how important it is for all of us across the tech ecosystem to prioritise operating with safe deployment and disaster recovery using the mechanisms that exist.”
Gorham says the weekend’s events demonstrate how damaging and disruptive an IT outage can be on a business’ ability to continue trading.
IBANZ has more than 100 member firms across New Zealand.
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