Colonial Pipeline: A Victim of A Cyberattack
Earlier this week, Colonial Pipeline was the victim of an extensive cyberattack. DarkSide, a criminal gang with Eastern European ties, hacked the company's control system in an attempt to receive money (the group claims this was not a political attack).
Colonial Pipeline is the largest pipeline system for refined oil products in the US, spanning from Texas to New Jersey. It is responsible for over 45% of the fuel consumed along the East Coast (source: The Wall Street Journal).
While the company has already resumed some, but not all, of its operations, the effects have already been felt. Panic buying has left 28% of gas stations in North Carolina dry, with major metropolitan areas being hit the hardest (source: The Washington Post). States have begun to declare states of emergencies as prices creep higher and lines of cars hit triple digits. Some gas station owners have begun to enforce dollar limits per customers in an attempt to conserve their reserves.
While this attack may be on a national scale, it can happen to a business of any size and is a perfect example of the need for cybersecurity insurance. In 2019, an independent school district in Houston was forced to pay over $200,000 after a ransomware attack rendered it inoperable (source: The Wall Street Journal). In fact, nearly 2,500 cases of cyberattacks were reported to the
Federal Bureau of Investigations (FBI) last year, an increase of 66% from 2019 (source: The Wall Street Journal).
Cybersecurity insurance helps cover financial losses related to an ransomware attack. Our agents at Nottingham Insurance specialize in protecting your businesses from a potential cyberattack. It is more important than ever before to consider this unique type of insurance so that a potential cyberattack does not threaten your livelihood.
Let Nottingham Insurance be there for you when life happens. You can call us at (609) 587-1600 or email us at email@example.com.