A global technology failure attributed to cybersecurity firm CrowdStrike on Friday caused significant disruptions for travellers.
The incident, considered one of the largest IT outages ever, resulted in widespread flight cancellations, disrupted check-ins, and extensive delays, leaving thousands of passengers stranded worldwide.
Flight tracking service FlightAware.com reported over 5,000 planes were grounded, and 23,000 flights were delayed globally on Friday.
Jetstar was heavily impacted, cancelling all flights in Australia and New Zealand on Friday night. Although normal operations have resumed, some Australians remain stranded overseas, with the repercussions of the outage still unfolding days later, according to ABC’s report.
The incident has raised questions about whether travel insurance covers IT outages. While many travellers are grappling with the costs of rebooking and other disruptions, travel insurers indicate there may be grounds for claims under certain conditions.
Natalie Ball, managing director of Comparetravelinsurance.com.au, noted that compensation through travel insurance depends on the type of cover and whether the policyholder had already departed on their journey when the outage began – information that insurance professionals can reiterate to their clients.
Typically, travel insurance does not cover cancellations caused by airlines. Consumer guarantees require airlines to provide services within a reasonable time frame after a delay or cancellation.
“When your flight is cancelled or delayed due to airline mechanical, technical, or operational outages, it is their responsibility to compensate you, either by booking you on another scheduled service or by offering you a refund,” Ball said.
For travellers already en route, there may be provisions to claim additional expenses from travel insurers.
“Due to the extraordinary nature and extended period of this event, affected travellers may be able to seek reimbursement for additional expenses incurred provided they’re not already being compensated by the airline,” she said.
She advises travellers to contact their airline first for assistance. If the airline does not provide satisfactory help, passengers should minimise their expenses and file a travel insurance claim.
Ball noted that travellers may claim expenses for delays, including meals and accommodation, as well as costs for reaching connecting flights to significant prepaid events.
“Depending on the length of your delay, Australian airlines are not necessarily obligated to provide cover for meals, refreshments, accommodation, or transfers. This is where travel insurance benefits may kick in. A comprehensive policy will usually provide cover for travel delay expenses once you are delayed for six hours or more. Just be wary that this benefit usually only applies to higher-priced, comprehensive policies,” she said.
To manage costs effectively, Ball said travellers should:
Aside from Australian travellers, consumers and businesses are being warned about potential scams following the CrowdStrike outage.
The National Anti-Scam Centre said scammers may exploit the incident by requesting unsolicited software downloads or personal information.
Australian Competition & Consumer Commission (ACCC) deputy chair Catriona Lowe emphasised the importance of being wary of any unsolicited contact that purports to aid in the aftermath of a major event like the global outage.
“Criminals look to take advantage of incidents like this CrowdStrike outage, creating a sense of urgency that you need to do what they say to protect your computer and your financial information,” she said. “Anyone can be scammed, so it is important to be wary of any unsolicited contact that purports to provide assistance in the aftermath of a major event like this.”
Consumers and businesses are advised to:
Australia’s Federal Minister for Cyber Security and Home Affairs Clare O’Neil, who convened the National Coordination Mechanism (NCM) following the global outage, also warned Australians to be cautious of scams exploiting the situation.
“Australians should continue to be alert to any phishing or scams impersonating CrowdStrike or other providers. If you see something suspicious remember: stop, think, protect, and report to Scamwatch to protect your fellow citizens,” she said.
