Marine Kidnap & Ransom Cover / Cyber Extortion Extension

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Marine Kidnap & Ransom Cover / Cyber Extortion Extension

Steamship Mutual Club Circular L.330

Marine Kidnap & Ransom Cover  – Cyber Extortion Extension       30 July 2019

Steamship Mutual has for a number of years offered its Members cover for marine Kidnap & Ransom risks. This cover is available on both an annual basis and/or for specific periods when a vessel is in a High Risk Area. When buying this cover, a Member’s primary concern has been the physical seizure of his vessel and its crew and any subsequent demand for ransom. However with the increasing use of technology on board, a vessel’s operating technology systems are becoming more connected to both the vessel’s own IT systems and those of operating companies ashore. This significantly increases the risk of a malware or ransomware cyber-attack on a vessel’s operating systems, whether targeted specifically at the Member’s vessel or simply aimed at any susceptible software, ashore or afloat. The International Maritime Organisation has recognised the increasing cyber risk to the safe operation of vessels and is now encouraging Flag States to address such risks within a vessel’s safety management system by no later than 1 January 2021.

All prudent vessel operators will take steps to ensure their Cyber security and Cyber safety systems follow best practice, but this does not guarantee immunity from attack. In the event of a cyber-attack which affects an operator’s ability to trade his vessel without payment of a ransom, it will be important to contain the security breach and restore the vessel’s systems as quickly as
possible to keep losses to a minimum.
In addition to protecting Members from the physical seizure of a vessel or its crew, Steamship Mutual can now offer its Members protection in respect of the consequences of Cyber Extortion. The Club’s Cyber Extortion Extension means that Members have instant access to experts who can begin the work of protecting Members interests and ensuring their vessels can continue trading. This annual Kidnap & Ransom cover extension will give Members protection 24/7 x 365 with limits up to US$1 million. Cover will be provided not only for any ransom and the cost of specialist response consultants, but also for the costs of restoring,  recreating or replacing damaged or destroyed computer programs, software or other data on board the vessel.
For more details, please contact your broker or Syndicate Underwriting team.

Cover Details:
Standard Annual Kidnap & Ransom cover (including crew & supernumeraries in the port area)
• Ransom – Limits up to US$10 million per insured event
• Loss of Ransom in transit – Limits up to US$10 million per insured event
• Fees & Expenses of Response Consultants – Unlimited
• Additional Expenses – Limits up to US$3 million per event
• Additional Premiums for transiting High Risk Areas.

Cyber Extortion Extension:
• Ransom – Limits up to US$1 million per insured event, per vessel
• Fees & Expenses of Response Consultants – Limits up to US$1 million per insured event, per vessel Additional Expenses –       US$250,000 per insured event, per vessel
• Sub-limit of US$100,000 per insured event per vessel to restore, recreate or replace damaged or destroyed computer programs, software or other electronic data on board the vessel.
• An annual Aggregate limit equivalent to the higher of the limits above will apply.

Members are reminded that the Club has produced a DVD on Cyber Security which can be watched here.

Rupert Harris, Director, rupert.harris@simsl.com

 

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