Counting the cost of CrowdStrike: the bug that bit billions [Video]

Cyber insurance coverage is set to cover only a fraction of the losses, leaving affected businesses to grapple with substantial uncovered expenses.

As eye-popping estimates emerge for the cost to enterprises of dealing with aftermath of last week’s CrowdStrike-induced outages, it’s crucial to break down the sources of these expenses and understand how much of the financial burden will be absorbed by cyber insurance.

Parametrix, known for its cloud monitoring and insurance solutions, has pegged the total loss for the 25% of Fortune 500 companies affected (excluding Microsoft) at a staggering $5.4 billion.

They’ll be covering most of that bill themselves, Parametrix said: “The portion of the loss covered under cyber insurance policies is likely to be no more than 10% to 20%, due to many companies’ large risk retentions, and to low policy limits relative to the potential outage loss.”