That’s due in part to the software industry’s licensing structure, through which standard software licenses limit the liability of the software developer, and because of insurance held both by CrowdStrike and its customers.
On Thursday afternoon, CrowdStrike Chief Executive George Kurtz shared on LinkedIn that over 97% of Windows sensors were back online — though only after customers incurred sizable losses in the form of lost business, downtime, and operational delays. CrowdStrike said it will provide a further update on its upcoming earnings call.
“CrowdStrike’s top priority continues to be on our customers and restoring every impacted system,” a company spokesperson said in a statement.
On Wednesday, analytics and insurance provider Parametrix calculated the financial impact of last week’s outage at $5.4 billion in losses for Fortune 500 companies, excluding Microsoft Corp.
The cybersecurity insurance policies of CrowdStrike’s Fortune 500 customers will likely cover no more than 10% to 20% of those losses, Parametrix said in its report Wednesday. The estimated insured losses on cyber insurance policies range from $540 million to $1.08 billion.
“CrowdStrike cannot take the liability for all of the financial impact [and] all of their clients in an unlimited way, right? And it’s impossible for companies to carry so much risk,” said Parametrix co-founder and CEO Jonathan Hatzor told MarketWatch. “That’s the reason that you have insurance that can diversify this exposure with other exposures and can really consume this risk.”
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