New industry guidelines on cyber security address insurance issues
A joint industry group, with members of BIMCO, CLIA, ICS, INTERCARGO, INTERTANKO, IUMI and OCIMF, released the second edition of The Guidelines on Cyber Security Onboard Ships yesterday.
The Guidelines on Cyber Security Onboard Ships are aligned with the recommendations given in the International Maritime Organization’s (IMO) Guidelines on cyber risk management, adopted in June 2017.
A new subchapter on insurance was added in the latest edition of the joint industry guidelines. The group has been looking at coverage after a cyber incident and the updated guidelines addresses cover for property damage, as well as cover for liability with examples of risk exclusions from traditional marine insurance covers.
In the guidelines, the shipping companies are encouraged to check with their insurers/brokers in advance whether their policy covers claims caused by cyber incidents and/or by cyber-attacks. The Guidelines on Cyber Security Onboard Ships is available Guidelines on Cyber Security Onboard Ships
In June this year Luke Foord-Kelcey from the Marine Insurance Broker Aon Benfield warned about adding cyber extensions to traditional marine insurance products in an article in Insurance Day (subscription required). Mr. Foord-Kelcey described the practice of incorporating cyber coverage into the likes of property and energy products due to a soft market as unsustainable. He emphasized the importance of understanding the cyber risk and the possible losses.
Norwegian Hull Club has been offering marine cyber insurance, “Cyber – Clause 380 buy-back”, since 1st January 2016. This policy covers physical damage to a vessel as a result of malicious cyber-attacks.
On the 1st June this year, the Club launched the second marine cyber insurance product; “Marine Cyber Threat and Extortion insurance”. This product covers the costs of extortion payments, crisis consultants and other actors as deemed reasonable and necessary. The critical element of this new insurance is our capability to respond and assist clients in case of cyber-attacks. To secure excellence we have established a partnership with NYA International, a well-established, leading global risk and crisis management consultant, for cyber extortion response, crisis management and loss prevention services.
Contact our special risk section for more information about Norwegian Hull Club’s marine cyber insurance products: specialrisk@norclub.com