Beazley launches cyber policy designed to strengthen defences aboard luxury yachts
Risk management at heart of affirmative cyber insurance
Specialist insurer Beazley has launched affirmative cyber insurance for luxury yachts that protects against physical damage, loss of access, threatened and actual ransom of the vessel. Cyber Defence for Superyachts also provides in-built risk prevention and immediate response services if there is a cyber breach.
Digital technology on board superyachts has continued to enhance safety, efficiency and communications, however this has further increased the interconnectivity of onboard and shore-based systems. This has created unintended complexity, which can lead to system failures and opportunities for prospective cyber attackers to exploit a vessel’s network and leave it more vulnerable to infiltration than ever before.
Strengthening defences and preventing vessels becoming targets is at the heart of Beazley’s cyber cover for superyachts. A comprehensive risk assessment helps to identify and mitigate potential gaps in security that could leave new policyholders vulnerable. In the event of a breach, the cover will provide immediate response services accessible to policyholders via a 24-hour claims hotline.
The cover includes:
- Affirmative service-led product to cover physical or threatened damage of the vessel
- Additional cover for loss of use of vessel and, by endorsement, cover for extortion
- Defined cyber event peril including malicious and non-malicious events, not including crew negligence
- Service limits for temporary replacement yacht, emergency accommodation, privacy crises response
- Post-bind risk assessment preparation services
- Post-event 24-hour response services including forensic investigation & restitution
- USD$25m aggregate policy limit
- Crew training provided in partnership with Warsash Maritime School, part of Solent University.
The cover has been designed by Beazley’s experienced underwriting, claims, risk and breach response specialists who have applied decades of experience and deep understanding of marine and cyber risk to build a policy that protects the vessels and their systems from these intangible threats and preserves the privacy, safety and comfort of owners, their guests and crew.
Richard Young, Marine Underwriter and Head of Hull at Beazley, said: “Following guidelines introduced this year by the International Maritime Organization (IMO), the onus is now greater on vessel owners and operators to demonstrate robust cyber risk management and to understand, assess, and manage risk to improve overall operational resilience in shipping.
“Reducing the cyber threat to superyachts is at the heart of our policy, which provides a triple defence mechanism of preventative mitigation services, traditional asset indemnity and immediate response services to incidents.”
Beazley has appointed Cyber Prism to provide the vessel cyber risk mitigation and preparedness services that will assist in advancing security and giving assurance that owners and managers are aligning with IMO 2021 guidelines.