In Insure TV's latest expert panel discussion, principal Ben Hobby joins leading cybersecurity professionals to analyze the pivotal CrowdStrike incident. This comprehensive panel delves into the ramifications of the incident on risk management practices and explores strategies for enhancing future cyber threat mitigation. Through their discussion, valuable insights and practical solutions are offered to navigate the ever-evolving cybersecurity landscape.
Key takeaways:
Business interruption coverage layers:
The panel provided an in-depth analysis of the various layers of business interruption coverage related to system failures. They discussed how coverage can differ significantly, including direct coverage for security failures, non-malicious system failures and contingent business interruption.
Variability in coverage and broker importance:
One of the critical insights was the considerable variability in coverage for non-malicious system failures among different insurers. This disparity underscores the crucial role of insurance brokers in bridging the gap between client expectations and the actual coverage provided by policies. With cyber insurance evolving from primarily addressing data breaches and malicious events to incorporating non-malicious system failures, brokers play a pivotal role in ensuring that businesses fully understand their coverage and avoid potential mismatches between what they expect and what is actually covered.
IT provider relationships and coverage implications:
The discussion highlighted the differences in coverage implications based on how IT services are procured. For example, contracting directly with major IT providers like CrowdStrike may result in different coverage compared to using a third-party Managed Service Provider (MSP). The panel stressed the importance of understanding these nuances as they can significantly impact the type and extent of business interruption coverage available, affecting how businesses manage their risk exposure and insurance needs.
