Cybersecurity cover is an essential insurance product for all businesses in the marine industries.
In this post, we’ll outline what marine cyber insurance is, what it covers, and how you can determine if you have the right level of protection. If you already have marine cyber insurance, how can you tell if it’s enough?
Cyber Threats for the Marine Industries
There are a number of cyber threats to the marine industry, with cyber criminals often targeting:
- Onshore maritime IT systems or onboard OT systems.
- Data breaches which could expose sensitive information such as accounts, crew lists, staff rotas, and payroll details. Criminals might sell this data for profit or encrypt it as part of a ransomware attack.
- Onboard systems, including PLCs, SCADA, GPS, and remote engine or cargo controls. If attackers gain control of these systems, they could disrupt operations and cause significant damage.
Even a small cyberattack can lead to staggering costs and reputational harm. This is why all maritime businesses should take cybersecurity seriously.
You can read our full guide to marine cyber security threats.
What Can Marine Cyber Insurance Cover?
Marine cyber insurance can protect you against financial losses resulting from a cyberattack. Coverage may include:
- Data breaches and data loss
- Extortion – for example, following a ransomware attack
- Physical damage – to vessels and other assets
- Loss of hire – covering downtime caused by a cyber incident
It can also cover your response to an attack, including expert support to contain the breach and outreach to notify clients or crew members of a data compromise.
For more information, read about our dedicated marine insurance services.
Do You Have Cybersecurity Cover?
According to DNV’s Maritime Cyber Priority report, only 40% of surveyed marine organisations invest sufficiently in IT and cybersecurity.
You might already have some form of cyber cover. But given the scale of the threat, underinsurance is a serious risk. Assess whether you have specialist cover for all potential scenarios.
Is Cybersecurity Required For Seaworthiness – An Overlooked Aspect?
The International Maritime Organization (IMO) treats cybersecurity as a core safety requirement. A cyberattack can disable critical digital systems for navigation, propulsion, and cargo management.
As a result, IMO may consider any vessel without adequate cyber protection as unseaworthy. This could invalidate other marine insurance policies, as insufficient cyber measures may demonstrate a failure to secure your digital infrastructure.
Under current IMO rules, every vessel must include a thorough cyber risk management process as part of its Safety Management System (SMS). The ISM Code outlines a five-step approach: Identify, Protect, Detect, Respond, and Recover. Marine cyber insurance plays a vital role in the response and recovery stages, making it a key component of risk management.
How to Ensure You Have the Right Level of Cybersecurity Cover
- Check the policy wording – Ensure it specifies what’s covered and any exclusions. Coverage for response and recovery is as important as financial loss protection.
- Check the limits – Confirm whether the limits are sufficient for potential losses and downtime.
- Talk to an insurance broker – A specialist broker can assess your unique risks and secure the right cover at the right price, avoiding both underinsurance and unnecessary costs.
Specialist Cyber Insurance for Marine Businesses
Everard Insurance Brokers are the specialist marine division of accredited Lloyd’s brokers James Hallam Limited. We can help you secure comprehensive protection against cybersecurity risks, whether onshore or at sea.
Learn more about our dedicated marine insurance services.