Specialist insurer Beazley has developed a new affirmative cyber insurance product for the marine space, designed to protect vessel owners and operators.
The product, called Beazley Cyber Defence for Marine, will provide insurance for physical damage and loss of hire in the event that a cyber incident impacts a vessel’s operational capabilities.
It is based on risk management services designed to reduce the likelihood of a cyber incident occurring and to support compliance with forthcoming International Maritime Organization (IMO) guidelines.
By January 2021, vessel owners and operators must have incorporated measures to manage cyber risk into their existing risk management processes, which have traditionally focused on the physical risks to safe shipping operations.
Beazley explained that the risk management services would be informed by a self-assessment questionnaire, a cyber security workshop, and an on-board cyber survey.
Cyber incidents, such as the breach of an on-board operating system, are becoming a growing risk for vessel owners and operators, the insurer noted, due to factors like the increasing interconnectivity between shore-based and on-board systems, including those responsible for navigation, propulsion and power control.
The new cover, which can be bought on a standalone basis or as part of a package, will complement Beazley’s existing marine products and cyber coverage for information technology systems, the company added.
“Ship owners and operators are dealing with the increased threat of cyber-attack as well as the impact of human error and increasingly interlinked vessel operating technology and IT systems,” said Richard Young, Beazley’s Head of Hull and War.
“Our preparation services reduce the risk of an incident occurring and the indemnity provides owners with clear cover and limits,” he continued.
“Should the worst happen and a cyber incident impacts the smooth running of vessels, clients can be confident they are protected with affirmative cyber cover.”