Endpoint security firm to offer outage warranty backed by Parametrix's insurance

By Henry Gale

May 27 - (The Insurer) - An undisclosed endpoint detection and response (EDR) security provider will provide its customers with a warranty against systems outages triggered by malfunctions, backed by insurance from MGA Parametrix, the company said.

The insurance program is being offered in direct response to global systems outages in July 2024 caused by an error in an update from EDR provider CrowdStrike.

"After last summer's CrowdStrike event, many EDR clients were deeply concerned about the ability of endpoint security tools to unexpectedly shut down entire systems," said Jonathan Hatzor, CEO of Parametrix.

"Our coverage helps restore confidence in these services, reduces friction in SLA and contract negotiations, and ultimately supports our clients' commercial goals."

EDR systems monitor all an organisation's network-connected devices (known as endpoints) to identify and mitigate against cyber threats. A single malfunction can instantly disable these endpoints and halt operations, as seen in last year's CrowdStrike event.

Parametrix estimated last year that the CrowdStrike outage caused economic losses to Fortune 500 companies of $5.4 billion, of which 10% to 20% was insured.

The new warranty provides the undisclosed EDR vendor's clients with up to $2 million of coverage each. A Parametrix spokesperson said more EDR providers are in the pipeline to offer this protection to their customers too.