Colonial Pipeline has cyber insurance policy
Colonial Pipeline has cyber insurance arranged by broker Aon (AON.N), with Lloyd’s of London insurers AXA XL (AXAF.PA) and Beazley (BEZG.L) among the underwriters, three sources said.
Colonial Pipeline has begun to restart the nation’s largest fuel pipeline network after a ransomware attack shut the line, triggering fuel shortages and panic buying in the southeastern United States.
The cyberattack halted 2.5 million barrels per day of shipments of gasoline, diesel and jet fuel last Friday after the most disruptive cyberattack ever on U.S. energy infrastructure.
Insurance Insider reported the news late on Wednesday, saying the cover was for at least $15 million.
Cyber insurance typically covers ransom payments and insurers often provide staff to negotiate with the hackers, in addition to IT and public relations services.
Colonial Pipeline does not plan to pay the ransom, sources familiar with the company’s response said.