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    Kelly Malynn

    Kelly Malynn

    Senior Risk Manager

    Comprehensive loss of hire and physical damage cyber protection for single commercial vessels and fleets.

    Technology has brought tremendous benefits to the safe and efficient operation of shipping. With this comes an increase in the interconnectivity of onboard, shore-based systems and the interdependency of operational and information technology.

    But these advances bring new risks and challenges. Cyber hazards are no longer limited to financial institutions and others that hold and manage personal data. The increase in financially motivated ransomware that targets systems and physical assets is agnostic of industry sectors.

    These vulnerabilities have been recognised by the International Maritime Organization which is advising that all vessels comply with new guidelines on cyber risk management by the first annual verification of the respective company's Document of Compliance after 1 January 2021.

    Seamless cover

    Beazley has designed a new set of cyber covers to meet the existing and developing needs of vessel operators. These can be combined with our existing cyber products to provide a holistic approach to the range of marine cyber risks faced today.

    Cover highlights

    • New Cover: This market leading solution offers a set of policies designed to address the risks associated with vessels' operational technology and covers:
      • Loss of hire
      • Physical damage
    • Modular: The policies are complementary to our other marine and cyber products and can be bought separately or as a package. The operational technology protection can also be purchased as a policy extension to our hull product.
    • Preparation services: Reducing the likelihood of a cyber incident from occurring is of primary importance. This makes the prevention services that we offer of particular value in order to mitigate the risk and demonstrate compliance with the forthcoming IMO guidelines.

    About DNV GL

    DNV GL is our chosen service provider for the preparation and assessment services. Operating in more than 100 countries, DNV GL is a leading classification society and is a recognised advisor for cyber security within the maritime industry. It is expertly positioned to provide insights and support with respect to cyber risks in operational environments. DNV GL is also a provider of software for managing risk in business critical activities, whilst improving asset performance. Its worldwide presence facilitates a strong customer focus and efficient sharing of industry best practice and standards.

    Cyber covers available

    Operational technology protection

    Preparation services

    Included as standard is a cyber risk assessment and on board survey by a leading certifier, to assist in risk understanding and mitigation.

    Financial loss

    As a result of a cyber event, financial indemnity for:

    • Loss of hire – following event impacting vessels
    • Physical damage to vessels

    Vessels

    • Single commercial vessels and fleets

    Territories

    • Worldwide

    Limits

    • US$5 million – loss of hire
    • US$50 million – physical damage

    Standalone, extension or package

    These coverages may be purchased either on a standalone basis or as an extension of our marine hull policies.

    They are also available to purchase alongside our data and information technology protection to form a comprehensive package that includes shore-side operations.

    Data and information technology protection

    Our  Beazley Breach Response (BBR) and InfoSec products incorporate unparalleled coverage and comprehensive solutions to protect against a broad range of threats including:

    • business interruption and contingent business interruption from information technology security and system failure 
    • cyber extortion, data recovery costs, data network liability and eCrime.   

    Beazley is unique among insurers in having a dedicated business unit, BBR Services, that focuses exclusively on helping clients manage cyber incidents successfully.

    And in the event of an incident, the policy will cover:

    • breach response costs for legal services and computer forensic services
    • notification  and call centre services
    • credit monitoring, identity monitoring or other personal fraud or loss prevention solutions
    • public relations and crisis management expenses. 

    Find out more

    Countdown to new IMO cyber guidelines deadline

    Recognising current and emerging threats, the International Maritime Organization (IMO) has introduced new guidelines on cyber risk management in safety management systems. These are complementary to the safety and security management practices already established by the IMO. They advise that these should be implemented no later than the first annual verification of the respective company’s Document of Compliance after 1 January 2021.

    The importance of marine cover that protects both operational and information technology

    Whilst operational technology (OT) systems are often based on the same technologies as IT systems, and therefore face many similar threats, there are some important differences. These require the cyber risk to a firm’s operational assets to be managed with its own strategy, rather than as an extension of an IT infrastructure.

    Business system controls within the IT infrastructure can be critical to a company’s operation but their failure is unlikely to result in a physical event such as the release of hazardous materials or loss of power to a vessel.

    As underlying operational technology has become more digitalised and less mechanical over recent years, there has been an associated improvement in safety within the marine industry.

    However, the IT and OT environments are increasingly being connected to gain efficiencies and monitor systems. This connection brings new risks and the potential of systemic loss.

    Operational technology – claims scenarios

    The operational technology policy covers the physical damage of a vessel and responds in the event of a cyber incidents. A range of cyber events can trigger the policy including:

    • Ransomware embedded within Automatic Voltage Regulator software could prevent generators from providing power. Maximum speed is reduced to a level that is insufficient for the tide resulting in the ship running aground.
    • Malware propagates from an IT system to a vessel’s computer corrupting the software which runs the integrated bridge system. This results in the auto pilot not following correct track.
    • A disgruntled employee embeds malware in the Electronic Chart Display & Information System software update causing it to lose reference, resulting in the vessel running aground.
    • The assisted collision Automatic Radar Plotting Aid (VHF/GPS/AIS) is corrupted or alerts overridden meaning there is insufficient time to take avoiding action.

    Cyber defence for marine team

    Kelly Malynn

    Senior Risk Manager

    Kelly Malynn

    London, UK

    +44 207 674 7037

    Underwriters

    Richard Young

    Head of Hull & War

    Richard Young

    London, UK

    Cyber defence for marine forms

    Brochures

    Cyber defence for marine