Facts:

The Georgia-based company US Colonial Pipeline which operates the largest petroleum pipeline in the United States, carrying 2.5 million barrels a day of gasoline, diesel, heating oil, and jet fuel, which transports about 45 percent of all petrol and diesel consumed on the east coast of the US reported that it was the victim of a “cybersecurity attack” that “involves ransomware,” forcing the company to take the systems offline and disabling the pipeline.

Consequences:

The shutdown led to the US federal government declaring a regional emergency to allow transportation of fuels through tanker trucks to tide over the impact of shortages and business interruption. Hackers stated that “our goal is to make money and not create problems for society.” The statement did not say how much money the hackers were seeking, but the deal to unblock the pipeline is only possible when hackers get extortion from the US Colonial Pipeline; until then, the company has to bear business interruption, forensic expenses to reestablish the data and systems, cyber extortion, and other related legal expenses and costs.

Cyber insurance as an answer for all;-

The above-mentioned exposure, expenses, and costs are well covered under the cyber insurance policy, as the basic cyber insurance covers the related exposures like business interruption expenses, forensic costs, extortion cost for important business data and third-party data, and legal expenses triggered by the third party for the data leaks etc.

Beacon Insurance Brokers:

We, as a broker, provide the related exposure coverage’s through our distinctive tailored insurance policies. We are serving our clients and have settled the claims of the risk-bearing exposures. In case of your risk assessment, please feel free to contact. We would be more than happy to engulf our expertise for a purpose.