Insurance, Regulatory Ripples Likely After Colonial Pipeline Hack

Tuesday, May 11, 2021

Brian Kint discusses the attack by hackers on Colonial Pipeline Co., North America’s biggest petroleum pipeline operator in Bloomberg Law. The ransomware hit against Colonial will likely increase costs for cyber insurance and may encourage legislators to push tougher standards for critical infrastructure such as pipelines, energy grids, and water systems.

According to Brian “The attack may prompt insurers to tighten the types of incidents covered or require companies looking for insurance to adopt stronger security standards before purchasing a policy.” He also shared that “The attack may also spur lawmakers to look seriously at heavier regulations for critical infrastructure, including energy companies.”

“As hesitant as some legislators may be to regulate private industry, it may help bring into focus a conversation saying government needs to do something legislatively to make sure these companies are implementing proper security measures,” Brian said.

Although the Colonial attack is not the first targeting critical infrastructure, it is the one of the largest. Water plants, hospitals, municipal governments, and schools have all been the targets of similar attacks in recent years.

To read the full article, click here.

 

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