The May 6, ransomware attack against Colonial Pipeline is likely to increase cost for cyber insurance, and may prompt legislators to push for tougher standards for critical infrastructure resources such as pipelines, energy grids, and water systems.  The attack may prompt insurers to tighten the types of incidents covered, or to require companies looking for insurance to adopt stronger security standards before purchasing a policy.  In addition, the Biden administration is expected to direct responsible agencies such as the Cybersecurity & Infrastructure Security Agency, and the Federal Energy Regulatory Commission to take a serious look at heavier regulations for critical infrastructure industries, including energy companies.  At a minimum, it is expected that the agencies will launch a coordinated investigation into cybersecurity as it relates to infrastructure.

For more information, please contact Phillip Hoover or Steve O’Day.