UK-based P&I Club Steamship Mutual has launched a cyber Insurance product which it said was aimed at assisting members to respond to any cyber-attack on their vessels, as well as insuring them for any loss of income a vessel might incur as a result of the attack.
Steamship noted that the IMO had adopted a resolution which required companies, no later than the first annual verification of their Document of Compliance (DOC) after January 1st 2021, to demonstrate that cyber security is an integral part of their safety management system.
Steamship said that “the ability to react quickly and effectively to any breach of cyber security is vital to ensuring the cyber safety of the vessel”.
While there was no cyber exclusion in a member’s P&I cover in respect of liabilities which might be caused through a cyber event, Steamship noted that members might still be left uninsured for the costs of restoring their systems and data and for losses where a vessel was put off hire or was unable to trade as a result of a cyber-attack.
Scope of Cover
Cover is only in respect of events affecting an entered vessel and does not extend to shoreside offices or other property.
Limit: US$10m in the aggregate per fleet per policy year. US$1m per vessel per event.
Agreed Daily Indemnity: This will usually be equivalent to the expected charter hire and is set at the beginning of the policy.
Deductible: One deductible for sections A, B & E and 1 day’s Agreed Daily Indemnity separately for C&D.
- A – Maritime Cyber Response Costs – costs arising out an actual or suspected network security breach.
- B – Maritime IT System Restoration Costs – restoration costs as a result of damage to Data or programs.
- C – Income Loss and Extra Expense – Agreed Daily Indemnity, less any income earned, where loss is incurred due to suspension or deterioration of vessel operations during the restoration of systems/data.
- D – Income Loss and Extra Expense – Outsource Service Provider – Agreed Daily Indemnity, less any income earned, where loss is incurred due to suspension or deterioration of vessel operations during the restoration of systems/data belonging to an outsource provider.
- E – Cyber Extortion & Ransomware – covers ransomware payments and expenses incurred.
Steamship said that taking out this cover gave members both protection for losses arising out of a cyber-attack, and speedy access to cyber experts who can respond to the incident and assist the members resolve any issues.
Members who purchase the cover will also receive a free Maritime Cyber Security Awareness education course, which focuses on increasing crew awareness of cyber threats.
The product has been developed in cooperation with specialty insurer and reinsurer Axis Capital and global legal firm Kennedys.
Jonathan Evans, Partner at Kennedys, said that “we are extremely pleased that Steamship has chosen Kennedys and Axis to provide marine cyber breach response services and insurance to its members anywhere in the world at any time. Members can access a dedicated helpline to Kennedys to navigate their way through a cyber-incident to an insured vessel via our international marine cyber hubs based in London, Madrid, San Francisco, Singapore, and Sydney, which act as a go-to office for each region.”