In June 2017, the second edition of The Guidelines on Cyber Security Onboard Ships was published and IUMI has been an active member of the joint industry group, led by BIMCO, to put this together. Other members of this industry working group included Cruise Lines International Association (CLIA), International Chamber of Shipping (ICS), International Association of Dry Cargo Shipowners (INTERCARGO), International Association of Independent Tanker Owners (INTERTANKO), and Oil Companies International Marine Forum (OCIMF).
This new version includes information on insurance issues, as well as a new subchapter examining a shipowner’s insurance coverage following a cyber incident as this is an important part of the risk assessment which shipowners should now take into consideration.
These new Guidelines state that the term “cyber”, when related to insurance includes a variety of definitions and scenarios, and it is important to differentiate between them to fully understand how the insurance cover is affected. Significantly, insurers generally understand that there is no systemic risk to ships arising from a cyber incident and that the impact of an incident is expected to be confined to a single ship.
Within these Guidelines it is highlighted that in many markets offering marine property insurance the policy may cover loss or damage to the ship and its equipment as a result of a shipping incident such as grounding or fire, even when the underlying cause is a cyber-attack. However, there are many exclusion clauses within the market for cyber-attacks, and shipowners must therefore be aware of what is or is not covered, to ensure the proper risk assessment.
For the full version of the Guidelines on Cyber Security Onboard Ships please click here.