From navigation and cargo tracking, to docking and propulsion, many operations in the maritime industry rely heavily on technology. The benefits of technology are clear, but those same systems and equipment have also become one of the sector’s biggest vulnerabilities.
It is clear that an organisation’s ability to manage and contain cyber-incidents has become imperative. Whether from a malicious act or simply a mistake from a crew-member or employees, the potential financial, legal and reputational consequences, as well as the disruption to operations can be devastating. There is also the exposure to Directors and Officers legal action for the board of the company. Specific exposures demand specific responses and this article explores the threats and the mitigation choices that are now available through specifically designed marine cyber coverage.
Multiple cyber threats
It’s easy to believe ‘it won’t happen to me’, but with the ever evolving technology comes more access points, more systems, and therefore, more vulnerabilities. Ultimately, if it’s part of a network, then it’s vulnerable. Everything as simple as an email inbox or weather information software, to more complex technology such as nautical chart correction and fuel management programs could disrupt vessels and business operations. Accessing or disrupting a system (whether intentionally or not) provides multiple opportunities, such as harvesting information, extortion or an interruption to your business.
Marine underwriters, with the benefit of a wide portfolio of business and loss data, are themselves nervous about the exposures as losses in the cyber sector steadily increase, particularly from Ransomware. Many of them are therefore introducing cyber exclusions in their policies and putting the risk back on to the insured. We can solve this new issue with our specific marine cyber policies.
In recent years, the maritime industry has fallen victim to a number of emerging cyber threats:
- Major international ports have had their docking systems crippled impacting global supply chains across multiple industries.
- Hackers have accessed the systems of oil-platforms remotely and shifted their positions forcing the crew to cease operations, resulting in business disruption and losses.
- A vulnerability on a software update leaves your servers exposed, resulting in the loss of data on rates, loading, shipping references etc. as well as unauthorized access to sensitive and confidential data.
- Somali pirates have employed hackers to assist in the hijacking of vessels – All of these examples have the potential to be disastrous, so how can you deal with this threat?
A standalone cyber policy tailored to the needs of the maritime industry acts as the first line of defence when a cyberattack occurs. It can help get your business back up and running quicker, cover financial loss due to business interruption and even cover PR costs to protect the reputation of your business.
The aim of marine cyber cover is to provide the right cover for onshore and offshore operations as well as physical damage losses.
Miller's Cyber capabilities
In safe hands
As one of the London market’s leading marine brokers, our highly developed knowledge and reputation for innovation and collaboration has been built up over more than a century. From consulting, broking and placing risks, to technical wordings and claims handling, we provide the highest level of service across all core disciplines of marine insurance.
Our cyber team is highly specialist, with experience dating back over the last twenty years and over 4,000 policies placed to-date. This understanding and experience enables us to leverage long-standing market relationships to obtain flexible cover on favourable terms.
Get in touch today
Whether you are a ship-owner, port operator, freight forwarder or cargo distributor, we will work with you to tailor a policy that will meet your specific needs.
Terms and conditions are matched to fit your exposure and budget. From broad form, modular tailoring to narrow physical damage only, the combined specialist knowledge of our market leading marine and cyber teams will help you to find a suitable solution.