Specialist insurer Beazley has created a marine cyber insurance product to meet the rapidly developing needs of vessel owners and operators.
Should a cyber incident impact a vessel’s operational capabilities, Beazley Cyber Defence for Marine provides insurance for physical damage and loss of hire.
At the heart of the product are risk management services designed to reduce the likelihood of a cyber incident occurring and demonstrate compliance with forthcoming International Maritime Organization guidelines. By 1st 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.
There are 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 product has been launched at a time when operational technology has become more digitalised. 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, which focuses on the operational technology of vessels, complements Beazley’s 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: “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. 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 impacts the smooth running of vessels, clients can be confident they are protected with affirmative cyber cover.”
Beazley’s head of Asia Pacific, Lucien Mounier added: “This is marine hull cover with cyber triggers to it. It is a product that will be managed and underwritten by the marine underwriters and is bringing a solution to cyber exclusions that were in a number of marine hull policies.
“It’s a policy that will be very easy to read for somebody in the marine industry. It’s something exciting because the marine world has been talking about cyber risks for a while but a lot of traditional cyber products maybe did not respond to some of the expectations the marine sector had. This is [on the other hand] is a marine cyber product created by the marine industry for the marine industry,” he concluded.