Partner Dan Healy Offers Insights on Insurance Recovery Options Following CrowdStrike Outage

Partner Dan Healy was featured in a Q&A with Reuter's Westlaw Today on the insurance recovery options for businesses from the CrowdStrike update that led to global IT disruptions on July 19, 2024.

Asked what type of insurance might cover the losses from the outage, Healy explained in the July 30 interview that there are a few potentially responsive coverages, and the extent of the loss suffered will help identify which coverage may apply.

"To the extent the business failed to perform functions, whether by the failure of automated processes or by employees having no capability to perform functions with the needed computer system, the extent of such failure should be documented in order to identify what coverages may apply," Healy said. "To the extent the business failed to perform functions, whether by the failure of automated processes or by employees having no capability to perform functions with the needed computer system, the extent of such failure should be documented in order to identify what coverages may apply."

Read the full Q&A here.

In addition, Healy was quoted in a Digital Insurance article on the insurance coverage challenges from the outage. In the July 28 article, the second of a two-part series, Healy predicted the potential liability could be immense.

"It does appear that CrowdStrike reacted quickly and there are reports that the issue was isolated and contained. It may be that those steps already have mitigated the loss and CrowdStrike may cite its efforts in that regard to lessen its culpability in disputes that lie ahead. But the fact that thousands of businesses worldwide were effectively shut down from performing some or all key functions suggests significant liability."

Read the full article here.