Analysis

Pipeline Ransomware Attack Could Raise Cyber Insurance Bar

Law360 (May 14, 2021, 6:43 PM EDT) -- The ransomware attack on Colonial Pipeline Co., the latest high-profile example of a growing threat, may make it tougher for companies to negotiate cyber insurance policies without first bolstering their technological defenses, experts said.

The attack by hackers caused Colonial Pipeline to temporarily halt fuel operations extending from Texas to New Jersey and took down aspects of the company's IT systems. The incident has renewed interest in cyber insurance policies, even as insurers raise the bar for policyholders to qualify for coverage, legal experts told Law360.

Robert Jacques of Cooley LLP, who primarily represents policyholders, said the broad and very public...

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