Colonial Pipeline has a cyber sources insurance policy

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A line of vehicles heads towards a gas station in Wawa, after a cyberattack crippled the nation’s largest fuel pipeline, run by Colonial Pipeline, in Tampa, Florida, U.S., May 12, 2021. REUTERS / Octavio Jones

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LONDON, May 13 (Reuters) – Colonial Pipeline has taken out cyber insurance from broker Aon (AON.N), with Lloyd’s of London insurers AXA XL (AXAF.PA) and Beazley (BEZG.L) among the underwriters, said three sources at Reuters. Thursday.

Colonial Pipeline has begun restarting the nation’s largest fuel pipeline network after a ransomware attack shut down the line, triggering fuel shortages and panic buying across the southeastern United States. Read more

The cyberattack halted 2.5 million barrels a day of gasoline, diesel and jet fuel shipments last Friday after the most disruptive cyberattack ever on US energy infrastructure.

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Insurance Insider reported the news late Wednesday, saying the coverage was at least $15 million.

Cyber ​​insurance typically covers ransom payments, and insurers often provide staff to negotiate with 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 told Reuters on Wednesday. Read more

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Reporting by Carolyn Cohn; edited by David Evans

Our standards: The Thomson Reuters Trust Principles.

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