BeazleyCyber defence for marine

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 interconnectivity of on-board, 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.

BeazleyCyber defence for marine

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.

BeazleyCyber defencefor marine

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 regulations.

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 lossAs 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.

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 incident. 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.

beazley.com

BeazleyCyber defencefor marine Beazley GroupPlantation Place South60 Great Tower StreetLondon EC3R 5ADUnited Kingdom

T +44 (0)20 7667 0623 F +44 (0)20 7674 7100

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The descriptions contained in this communication are for broker preliminary informational purposes only. Coverages are underwritten by Beazley syndicates at Lloyd’s and will vary depending on individual country law requirements and may be unavailable in some countries. The exact coverage afforded by the products described in this brochure is subject to and governed by the terms and conditions of each policy issued.

Contact usYou can learn more about how Beazley cyber defence for marine can help your clients by contacting:

Richard Young T +44 (0)20 7674 7588 richard.young@beazley.com

Kelly Malynn T +44 (0)20 7674 7037 kelly.malynn@beazley.com