Microsoft outage may trigger business interruption insurance claims

A global Microsoft outage, potentially causing billions in economic damage, may give affected businesses grounds for insurance claims, according to a lawyer specializing in insurance law. The disruption impacted Microsoft 365 services, including Outlook, Copilot, and Teams, though the company reported issues easing on Saturday morning. Barrister John Gibbered stated that businesses with "business interruption" coverage could likely file claims, as this covers unexpected events preventing normal operations and causing financial loss. He noted that claims against Microsoft directly are rarer and harder to establish, though theoretically possible. Gibbered advised businesses to thoroughly review policy terms and conditions, emphasizing the need for robust systems to maintain operations during such disruptions. AUT professor Kenneth Johnson added that reliance on Microsoft platforms carries inherent risk, suggesting alternative contact methods, though switching to personal email raises data security concerns.