Lessons from CrowdStrike Global Meltdown

Published: 28/10/2024

Lessons from CrowdStrike Global Meltdown

On July 19th, 2024, a security update from CrowdStrike caused one of the biggest global IT outages in history. Crippling over 8.5 million devices, it triggered chaos across industries all over the world including Australia, from airports and banks to supermarkets and healthcare systems.

While the issue was swiftly traced to a faulty software update, and almost completely recovered within 24 hours, the event exposed deep vulnerabilities in the world's technology infrastructure. It underscored the critical importance of robust cybersecurity, well-planned contingencies, and cyber insurance to shield businesses when things go wrong.

Interconnected vulnerabilities in modern business

CrowdStrike provides endpoint security and threat detection to 30,000 companies worldwide. It runs operations on Windows, the most used operating system across the globe. When both systems failed, it resulted in widespread operational disruption, causing one of the largest technology disruptions to date. In Australia alone, the impact on businesses has been estimated at more than $1 billion. The event serves as a reminder that businesses cannot rely on cybersecurity alone. Resilience depends on a combination of redundancy, diversification, and preparation for the failure of even trusted providers.

Do you have a disaster recovery plan in place?

During the CrowdStrike outage, many businesses struggled with internal and external communication, as systems remained offline or experienced slow recovery times. Companies that struggled most were those overly reliant on a single technology without a backup plan. This is why a good disaster recovery plan and a well-developed business continuity plan are critical during a crisis. Businesses should evaluate, update and test their business continuity and disaster recovery plans regularly.

[Read: "Could your business survive a cyber attack?"]

The benefits of training and testing

Even when third-party platforms experience an outage, businesses can mitigate risks by ensuring that employees are well-versed in cybersecurity best practices. Training employees to recognise phishing attempts, malware, and other threats can reduce the likelihood of a successful attack during an outage when systems may be more vulnerable.

Regularly conducting stress tests on their cybersecurity infrastructure and simulating incident response scenarios can also prepare organisations for real-world disruptions.

Cyber insurance provides more than just financial protection

One of the most important considerations for businesses in the wake of the CrowdStrike outage is the role of cyber insurance. While cyber insurance cannot prevent an outage from occurring, it can provide crucial financial support in mitigating the consequences of such an event. More than that, comprehensive cyber insurance policies provide expert response services, a standout feature for smaller businesses lacking in their own cybersecurity teams. These services help manage the complexities of a cyberattack, enabling faster recovery and reducing costs. Additionally, some policies offer 'Active Insurance,' which leverages cutting-edge cybersecurity tools and around-the-clock specialists to monitor, detect, and neutralise cyber threats proactively.

[Read: "Top 5 reasons businesses need cyber insurance"]

As businesses become increasingly reliant on technology, the risk of IT outages grow, not only in frequency but in the size of their impact. It's clear that preparing for cyber incidents is essential for ensuring resilience in the face of inevitable disruptions, through both enhanced security protocols and the financial safety net of cyber insurance.

How Coverforce can help

Our expert insurance brokers are here to help. They will evaluate your business's unique cyber insurance requirements and provide you with the most cost-effective coverage options from our broad network of insurers. In the event of a claim, we act on your behalf, working closely with the insurer to ensure you receive the full benefits you're entitled to under your policy. To learn more about our Cyber Insurance solutions, or to request a no-obligation quote, reach out to our dedicated team at your nearest Coverforce office.



Find this article helpful? Click on one of the links below to share the content.


Are you looking for expert risk advice and great value cover for your business? Call us to speak to a Coverforce insurance broker today.

Our Insurance Brokers service clients throughout Australia, with key offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.

Our global insurance network

Our brokers can access more than 100 insurers across the globe to find your business quality cover at the right price.

Insurer logo AIG
Insurer logo Allianz
Insurer logo Blue Zebra
Insurer logo CGU
Insurer logo CHU
Insurer logo Chubb
Insurer logo Dual
Insurer logo GIO
Insurer logo GT
Insurer logo Hollard
Insurer logo Liberty
Insurer logo Lloyds
Insurer logo Longitude
Insurer logo Mecon
Insurer logo Miller
Insurer logo NTI
Insurer logo QBE
Insurer logo Quanta
Insurer logo SUU
Insurer logo UAA
Insurer logo Vero
Insurer logo Zurich

Terms of Use  |  Legal Notices  |  Target Market Determinations  |  Contact Us  |  Copyright © 2018 Coverforce Pty Limited. All rights reserved.