Jurisdiction(s):
United Kingdom

CrowdStrike outage: UK legal guidance on contracts, indemnities, loss quantification and insurance cover for affected businesses

Published on: 14 August 2024

Published by a Law360 reporter

Legal News

Article summary

Businesses affected

In the UK, the FTSE 100 fell sharply as outages hit many large companies. Airlines drew the most focus after the total collapse of computer systems across numerous carriers led to flight cancellations, stranding travellers in airports worldwide. British Airways PLC reported cancelling roughly 131 flights between 19–21 July 2024. Across major airlines, more than 4,000 flights were cancelled on 19 July 2024 alone, and over 11,000 between 19–21 July 2024. For many carriers, disruption persisted into the following week.

NHS hospitals and other medical providers were blocked from undertaking critical business functions and from accessing information required to deliver care. Likewise, some emergency response operators’ call centres went offline. Financial systems were also affected and became unusable, including trading platforms, banks, retail payment systems and other Microsoft-based transactional platforms.

The monetary cost of the outage has yet to be determined. Reports suggest over 311,000 instances of global outages were logged before the software was repaired. The consequences of such business disruption can send wide ripples through the economy. Not all of these effects will be addressed swiftly...

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