Specialist insurer Beazley has created a marine cyber insurance product – “Beazley Cyber Defence for Marine” – which provides insurance for physical damage and loss of hire.
Beazley said that at the heart of the product were risk management services designed to reduce the likelihood of a cyber incident occurring and demonstrate compliance with forthcoming International Maritime Organization (IMO) guidelines.
By January 1st 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 said that there were three elements to the risk management services included within Beazley’s product:
· a self-assessment questionnaire;
· a cyber security workshop;
· and an on-board cyber survey.
The insurer said that the product was being launched at a time when operational technology was becoming more digitalized. “New challenges have also arisen out of greater interconnectivity between shore-based and on-board systems, including those responsible for navigation, propulsion and power control. A breach of an operating system on board a vessel could, for example, lead to a grounding or collision.”
The cover focuses on the operational technology of vessels and, the insurer said, complemented its other marine products and existing cyber cover for information technology systems. It can be bought on a standalone basis or as part of a package.
Richard Young, Beazley’s head of hull and war, said that “shipowners 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, adding that “our preparation services reduce the risk of an incident occurring and the indemnity provides owners with clear cover and limits. Should the worst happen and a cyber incident impact the smooth running of vessels, clients can be confident they are protected with affirmative cyber cover.”