Hacker networks are becoming increasingly sophisticated and responsible for launching some of the most intelligent and complex cyber attacks nationally and internationally. Imagine the next major energy catastrophe being caused by a cyber attack: explosions at multiple facilities triggered remotely by hackers; failure of pipeline controls causing pollution and business interruption; control of deep-water wells seized by hackers.
Today’s technology allows entire oil and gas networks to be operated remotely, but opening the door to the internet has placed the energy industry in a vulnerable position for hackers and computer viruses to target anything from refineries, to pipelines and everything in between. Energy companies are disproportionately targeted by cyber attacks and hackers, placing at risk the entire foundation of the company’s functionality and sensitive data of others that it holds. A company’s IT is not only at risk, but its operational technology and critical infrastructure as well.
These cyber risks present complex exposures resulting from the use of technology, and related first and third party losses are potentially significant and can no longer be ignored.
As a recognized leader in energy sector insurance matters, Hall Maines Lugrin has provided wording advice, coverage consultation and litigation services to our clients operating in this industry. In fact, a major energy insurer turned to us to advise them on policy wording for new cyber-risk products developed specifically for the energy market.
Our deep knowledge of traditional insurance policies helps us anticipate how that policy might respond to cyber-risk losses, including general liability and D&O policies. As insurance companies design more comprehensive products to address cyber risks, we have instinctively adapted and prepared to respond to our client’s specific needs with insightful wording and smart coverage advice.
Thankfully, there has been little cyber-based litigation to date. But should a cyber risk incident require litigation, Hall Maines Lugrin’s attorneys are well prepared to handle the case. Our extensive experience in litigating insurance coverage disputes makes us well-poised to handle the level of sophistication, technical difficulty and complexity as presented in cyber-risk matters.
Our resolution strategies are innovative and novel, yet developed with an understanding and full appreciation for the implications they present to the business as a whole.