Everyone needs to review their cyberinsurance polices following the December 2015 “multi-billion dollar loss after hackers cut electric power to more than 80,000 Ukrainians last month,” Reuters reported that many publicly-traded utility companies “have warned of their exposure to cyber risks in their most recent annual reports to securities regulators, and that their insurance coverage might not cover all expenses related to an attack.” The January 28, 2016 report entitled “U.S. utilities worry about cyber cover after Ukraine grid attack” included these comments from “security experts, insurance brokers, insurers and attorneys representing utilities”:
…the Ukraine attack has exposed long-standing ambiguity over which costs would be covered by insurance in various cyber attack scenarios.
Reuters also included this warning:
Security experts have warned for several years that a cyber attack could cause power outages due to the growing reliance on computer technology in plants that is accessible from the Internet.
This report highlights the importance of getting the right experts to review you cyberinsurance policies.