Physical Sabotage Remains A Substantial Risk to Utility Companies and Other Companies Providing Critical Infrastructure

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While utility companies and critical infrastructure companies have focused on digital sabotage and cybersecurity over the past few years, such companies must remain cognizant about continued risks of physical sabotage.

Reports have surfaced that federal authorities are investigating a number of recent acts of sabotage on utility companies in North and South Carolina.  See Feds Investigating Multiple Reports of Recent Utility Company Sabotage (Dec. 8, 2022).  These alleged sabotage acts have left tens of thousands of customers without critical utility services. 

Such reports are another reminder that while “new-age” cyberattacks remain a major concern, “old-fashioned” physical sabotage risks still exist.  If your company is faced with a physical or digital attack, it must react in an effective, efficient and legally compliant manner.  In addition to restoring service to customers, other considerations exist including properly documenting damages for future insurance and/or restitution; coordinating with federal, state, and local authorities; and, mitigating additional exposure. 

McGuireWoods has a dedicated and experienced team that can assist not only after an incident has occurred, but to create a comprehensive strategy before your company is faced with such attack. 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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