--- title: Recent tech outages reveal the perils of equipment breakdowns for modern society. description: Recent tech outages reveals overarching issue with tech shutdowns image: https://blog.axisins.com/hubfs/1-Feb-02-2026-08-57-36-1488-PM.png --- [![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/logo.png)](https://www.axisins.com/) Connect with us Call us Today [(201) 847-9175](tel:2018479175) [(877) 787-5258](tel:8777875258) - - About Axis - [Our Approach](https://www.axisins.com/about-us/) - [Our Team](https://www.axisins.com/our-team/) - [Testimonials](https://www.axisins.com/testimonials/) - [Case Studies](https://www.axisins.com/case-studies/) - [News & Events](https://blog.axisins.com/tag/news-and-events) - [Careers](https://www.axisins.com/job-opportunities/) - Product Lines - [Overview](https://www.axisins.com/products/) - [On-line Quoting](https://www.axisins.com/products/on-line-quoting/) - [Surety Bonds](https://www.axisins.com/products/surety-bonds/) - [Cyber Liability/Privacy & Network Security](https://www.axisins.com/products/cyber-liability-privacy-network-security/) - [Overview](https://www.axisins.com/products/cyber-liability-privacy-network-security/) - [Tail Coverage Insurance](https://www.axisins.com/products/tail-coverage-insurance/) - [Why Cyber Liability](https://www.axisins.com/products/cyber-liability-privacy-network-security/why-cyber-liability/) - [Cyber Hotline/Resources](https://www.axisins.com/products/cyber-liability-privacy-network-security/cyber-hotline-resources/) - [Claims Scenarios](https://www.axisins.com/products/cyber-liability-privacy-network-security/claims-scenarios/) - [Professional Liability Insurance (E&O)](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/) - [Overview](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/) - [Tail Coverage Insurance](https://www.axisins.com/products/tail-coverage-insurance/) - [Professions](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/professions/) - [Insurance](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/insurance-agents-brokers/) - [Legal](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/legal/) - [Real Estate](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/real-estate-agents-brokers/) - [Technology](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/technology/) - [Healthcare/Medical](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/healthcare-medical-practice/) - [Architects & Engineers](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/architects-engineers/) - [Financial Institutions](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/financial-institutions/) - [Construction](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/construction/) - [Consulting](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/consulting/) - [Media](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/media/) - [Mortgage Bankers & Brokers](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/mortgage-bankers-brokers/) - [Miscellaneous Services](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/miscellaneous-services/) - [Resources](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/resources/) - [Claims Scenarios](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/claims-scenarios/) - [Management Liability Insurance (D&O)](https://www.axisins.com/products/management-liability-insurance-do/) - [Overview](https://www.axisins.com/products/management-liability-insurance-do/) - [Tail Coverage Insurance](https://www.axisins.com/products/tail-coverage-insurance/) - [Claims Scenarios](https://www.axisins.com/products/management-liability-insurance-do/claims-scenarios/) - [Resources](https://www.axisins.com/products/management-liability-insurance-do/resources/) - [Employment Practices Liability Insurance](https://www.axisins.com/products/employment-practices-liability-insurance/) - [Overview](https://www.axisins.com/products/employment-practices-liability-insurance/) - [Tail Coverage Insurance](https://www.axisins.com/products/tail-coverage-insurance/) - [Claims Scenarios](https://www.axisins.com/products/employment-practices-liability-insurance/claims-scenarios/) - [Resources](https://www.axisins.com/products/employment-practices-liability-insurance/resources/) - [Crime Insurance](https://www.axisins.com/products/crime-insurance/) - [Overview](https://www.axisins.com/products/crime-insurance/) - [Claims Scenarios](https://www.axisins.com/products/crime-insurance/claims-scenarios/) - [Resources](https://www.axisins.com/products/crime-insurance/resources/) - [Fiduciary Liability](https://www.axisins.com/products/fiduciary-liability/) - [Overview](https://www.axisins.com/products/fiduciary-liability/) - [Claims Scenarios](https://www.axisins.com/products/fiduciary-liability/claims-scenarios/) - [Resources](https://www.axisins.com/products/fiduciary-liability/resources/) - [FAQs](https://www.axisins.com/faqs/) - Client Resources - [Make a Payment](https://axisins.epaypolicy.com/) - [Apps & Forms](https://www.axisins.com/client-resources/apps-forms/) - [Report A Claim](https://www.axisins.com/client-resources/report-a-claim/) - [Request A Certificate of Insurance](https://www.axisins.com/client-resources/request-a-certificate-of-insurance/) - [Blog](https://blog.axisins.com/) - [Contact Us](https://www.axisins.com/contact-us/) -   CALL US TODAY [(877) 787-5258](tel:8777875258) ## Keeping you up to date on trends, emerging exposures and other critical issues. [Subscribe To Our Blog](https://share.hsforms.com/18qZLml0MTSqtYWBFqQFAGA35dv4?__hstc=172306556.605fbd816f522e1de3e9428cb969d5b4.1580877711545.1580973215492.1580978435349.10&__hssc=172306556.3.1580978435349&__hsfp=1035641285) # Recent tech outages reveal the perils of equipment breakdowns for modern society. February 2, 2026 ![](https://blog.axisins.com/hubfs/1-Feb-02-2026-08-57-36-1488-PM.png) Drew Smith On January 14, Verizon’s network across the Northeast went offline, causing widespread disruption as calls could not be completed. This is the latest in a series of outages that continue to disrupt our increasingly connected world, and it's raising concerning issues about reliability. Around 12:30 on January 14th, Verizon customers throughout the Northeast noticed their phones had gone into emergency mode, a sign that their network was down. They could still access Wi-Fi if they were in a location with Wi-Fi coverage, but their 5G towers were offline for more than 7 hours. No one could call anyone on the Verizon network, and even those from T-Mobile and AT&T could not access those on Verizon. Fortunately, or unfortunately, it wasn’t caused by a cyber-attack, but rather a currently undisclosed software issue.[(1)](https://www.datacenterdynamics.com/en/news/verizon-wireless-outage-hits-thousands-across-the-us/) This kind of shutdown reveals an increasingly worrying trend of network crashes and hacks. The world is increasingly connected, and as a result, network outages disrupt everyday life. This was no more apparent than when the airline industry collapsed due to an undetected error by CrowdStrike. CrowdStrike’s security systems are centered on what is known as an endpoint protection service. Endpoints are what you access the internet with every day, from laptops and tablets, computers, and even your cellphones.[(2)](https://www.microsoft.com/en-us/security/business/security-101/what-is-an-endpoint) Malicious actors target these endpoints because they are the gateway into private servers and other valuable data. Viruses such as Emotet, which target them, are nearly impossible to remove and may require replacing the infected device. When they launched a routine update, the update contained code that, when it connected to Windows, Windows rejected it and caused the affected systems to enter safe mode. While it was caught in time to roll back the updates for personal systems, for the airline industry, it was essentially Armageddon for the US airline industry, as it took over a week for airlines to get back online. Although legacy systems were shown to be part of the issue, incidents such as Verizon and CrowdStrike demonstrate that networks can easily disrupt everyday life. In the latter’s case, the issue was found to be the legacy systems of many of these big companies. These legacy systems aren’t supported or went out of support years ago. These systems are integrated into their company infrastructure and not as easily upgradable. As a result, they tend to be more vulnerable to disruptions and shutdowns. Perhaps the biggest problem is the potential costs of a shutdown. Even a ten-minute shutdown of a network can cost millions of dollars. “In a 2024 survey by Splunk, enterprises reported more than **$400 billion in annual downtime costs** across the Global 2000 — and a significant portion of that loss came from impact assessment and communication delays (Splunk, 2024). During the initial 30 minutes of an incident, **15–20% of the total cost** is typically consumed by impact assessment alone. Ongoing monitoring adds another **10–15%**, and post-incident reporting can contribute an additional **5–10%** (Uptime Institute, 2022). That means most outage’s cost accrues *before* remediation is even underway. Meanwhile, the **Mean Time to Detect (MTTD)** across security and service incidents remains around **five hours** (Splunk, 2023). And even after detection, many organizations spend additional hours — or days — mapping which users and locations are affected. This reactive approach isn’t just inefficient; it’s financially crippling. - **Personnel Costs:** Overtime for IT staff conducting user-impact analysis. - **Idle Time:** Salaries paid to employees unable to work while systems are being assessed. - **External Consulting:** Engagement of incident-response specialists to quantify scope. - **Communication Overhead:** Stakeholder updates, compliance documentation, and audit reporting. For a typical **four-hour outage**, the direct impact assessment costs alone can exceed **$750,000–$1.5 million** — and that’s before lost productivity or customer impact is considered. [(3)](https://kollective.com/the-hidden-costs-of-it-outages/) While Verizon's tower issue was not on the scale of what happened with CrowdStrike, the potential for massive losses is there. Over 1.5 million customers were affected across the Northeast. The damage might have been relatively small, especially with their $20 credit to affected customers, but if it were more widespread, they would have been dealing with it in different ways, with potential damage in the billions. Verizon's outage in the Northeast was the latest of a concerning trend of technology shutdowns that impact millions. No company is completely immune to shutdowns and outages, whether through equipment failure or more nefarious attacks. When they go down it impacts millions and cost billions. Companies to be more prepared for their networks going doing because it could easily be much worse. About Axis At [Axis Insurance Services, LLC,](https://www.axisins.com/) we’re proud of our reputation in building highly customized insurance solutions for all types of professional service companies and their employees. We believe our diverse product options and outstanding customer service help us earn our clients’ trust and loyalty. What sets us apart from other insurance brokers is our deep understanding of the market and our ability to tailor coverage options in sync with our clients’ objectives. [Professional and Management Liability](https://www.facebook.com/AxisInsuranceServices/videos/10156646872734914/) policies can be a commodity – we only build custom coverage solutions that work. **Leading the Industry for Over Twenty Five Years** Celebrating its 25th year anniversary in 2024, Axis Insurance Services, LLC, is proud of our reputation in building highly customized insurance solutions for all types of professional service companies and their employees. We believe our diverse product options and outstanding customer service help us earn our clients’ trust and loyalty. Formed in 1999, Axis Insurance Services, LLC is a nationwide leader in the professional and management liability insurance industry, developing innovative risk management solutions for today’s evolving businesses. We offer insurance programs to a broad array of professionals and industries, including insurance agents/brokers, attorneys, commercial real estate firms, technology, healthcare/medical, financial institutions, architects/engineers, consulting firms, media, and many others. In 2014, we launched [PLRisk ](http://www.plrisk.com/?__hstc=172306556.a8b1c6ec6c80f0606dcf3de01e654286.1765294410365.1770047703689.1770055452550.22&__hssc=172306556.2.1770055452550&__hsfp=8b087d59502e93b66fdba87c2cd733f0)in 2014 and today the two firms provide retail and wholesale coverage solutions for Cyber Liability & Privacy/Network Security, Errors and Omissions, Directors and Officers, Employment Practices Liability, Commercial Crime and Fiduciary coverage. For more information about our company, please [click here](https://www.axisins.com/wp-content/uploads/2017/06/Axis-Insurance-Services-LLC-Company-Overview.pdf). [AI Lawsuits reveal the extent of IP damage the systems can cause IP Holders](https://blog.axisins.com/ai-lawsuits-reveal-the-extent-of-ip-damage-the-systems-can-cause-ip-holders) [Axis Insurance to send their brightest to IREM Tri state Conference](https://blog.axisins.com/axis-insurance-to-send-their-brightest-to-irem-tri-state-conference) Search ### Share this post [![Share on facebook](https://7528309.fs1.hubspotusercontent-na1.net/hub/7528309/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/facebook-color.png?width=24&name=facebook-color.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fblog.axisins.com%2Frecent-tech-outages-reveal-the-perils-of-equipment-breakdowns-for-modern-society%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on linkedin](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/linkedin-color.png?width=24&name=linkedin-color.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.axisins.com%2Frecent-tech-outages-reveal-the-perils-of-equipment-breakdowns-for-modern-society%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/x-twitter-color.png?width=24&name=x-twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.axisins.com%2Frecent-tech-outages-reveal-the-perils-of-equipment-breakdowns-for-modern-society%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.axisins.com%2Frecent-tech-outages-reveal-the-perils-of-equipment-breakdowns-for-modern-society%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) [![Share on email](https://7528311.fs1.hubspotusercontent-na1.net/hub/7528311/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/email-color.png?width=24&name=email-color.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fblog.axisins.com%2Frecent-tech-outages-reveal-the-perils-of-equipment-breakdowns-for-modern-society%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fblog.axisins.com%2Frecent-tech-outages-reveal-the-perils-of-equipment-breakdowns-for-modern-society%3Futm_medium%3Dsocial%26utm_source%3Demail) ### Recent Posts ### Categories - [E&O (19)](https://blog.axisins.com/tag/eo) - [Cannabis (11)](https://blog.axisins.com/tag/cannabis) - [Company News (1)](https://blog.axisins.com/tag/company-news) ![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/art2.png) ### Connect to Our Cyber Hotline & Resources [Connect](https://www.axisins.com/products/cyber-liability-privacy-network-security/cyber-hotline-resources/) Please see our [Privacy Policy](https://www.axisins.com/privacy-policy) to understand how Axis Insurance Services handles your personal information. California Residents are entitled to specific rights which can be outlined on our Notice for [California Residents](https://www.axisins.com/california-privacy-policy). You may request information regarding our privacy policy or update your preferences by contacting us directly at 201-847-9175 or by completing the Request for Information on [Privacy form](https://info.axisins.com/axis-request-for-information-on-privacy). ### Schedule a Consultation ### Stay tuned with us on social networks! [![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/logo.png)](https://www.axisins.com/) 795 Franklin Avenue, Suite 210 Franklin Lakes, NJ 07417 Phone: [201-847-9175](tel:2018479175) Fax: 201-847-9174 [www.axisins.com](http://www.axisins.com/) ### Quick Navigation - [Home](https://www.axisins.com/) - [About Axis](https://www.axisins.com/about-us/) - [FAQs](https://www.axisins.com/faqs/) - [Blog](https://www.axisins.com/blog/) - [Site Map](https://www.axisins.com/site-map/) - [Contact Us](https://www.axisins.com/contact-us/) - [Privacy Policy](https://www.axisins.com/privacy-policy/) - [Terms & Conditions](https://www.axisins.com/terms-conditions/) - [Accessibility Statement](https://www.axisins.com/accessibility-statement/) - [State Licenses](https://www.axisins.com/state-licenses/) Copyright ©2022 – 2024, Axis Insurance Services, LLC In California and Texas as NJ Axis Insurance Services, LLC. In Illinois as Axis Insurance Services of New Jersey, LLC. In New York as NJ Axis Insurance Agency New Jersey Corporate License #OP-9948294. California Corporate License #OD-79693. Axis Insurance Services, LLC is not affiliated with Axis Insurance Company, Axis Capital, its subsidiaries, or affiliates in any way.