Cyber Risks Insurance in the Maritime
Sector: Growing Pains and Legal Problems
Baris Soyer
Abstract Cyber risks pose a genuine economic threat to the maritime sector and we
have recently witnessed several high-profile cyber-attacks paralysing operations of
corporations and ports for a considerable amount of time. The insurance market has
responded to the increasing threat by offering cover against cyber risks in maritime
sector. It is discussed in this paper that standard cover on offer in the market might
not afford adequate protection for companies facing such cyber-attacks. Especially,
it has been illustrated with examples that standard cyber exclusion clause incorporated into marine policies (known as CL380) is very broad and might act to the
detriment of the assured. The paper concludes that it is essential for maritime
corporations to appreciate the scope and nature of cyber risks policies available
and the relationship between such policies and conventional insurance products.
Otherwise, they run the risk of not utilising such insurance products in the most
efficient manner in neutralising the cyber risks they face in the course of their
business.
1 Introduction
Cyber risks pose a genuine economic threat to all types of businesses,
1 and those
operating in the maritime sector are not immune to such risks. However, a significant
increase in the number of incidents connected with cyber risks has been observed in
recent years, making shipping companies realise their vulnerabilities in case of such
B. Soyer (*)
Institute of International Shipping and Trade Law, Swansea University, Swansea, UK
e-mail: b.soyer@swansea.ac.uk
1 UK businesses were subjected to an average of 231,028 Internet-borne cyber-attacks in 2017. The
volume of cyber attacks increased by 24% in the final quarter of the year, with companies—on
average—experiencing 68,212 attacks each between October and December (data obtained from:
https://www.beaming.co.uk/cyber-reports/cyber-attacks-uk-businesses-increase-231028-2017/
(last tested on 31 December 2018)).
© Springer Nature Switzerland AG 2020
P. K. Mukherjee et al. (eds.), Maritime Law in Motion, WMU Studies in Maritime
Affairs 8, https://doi.org/10.1007/978-3-030-31749-2_29
627
Sector: Growing Pains and Legal Problems
Baris Soyer
Abstract Cyber risks pose a genuine economic threat to the maritime sector and we
have recently witnessed several high-profile cyber-attacks paralysing operations of
corporations and ports for a considerable amount of time. The insurance market has
responded to the increasing threat by offering cover against cyber risks in maritime
sector. It is discussed in this paper that standard cover on offer in the market might
not afford adequate protection for companies facing such cyber-attacks. Especially,
it has been illustrated with examples that standard cyber exclusion clause incorporated into marine policies (known as CL380) is very broad and might act to the
detriment of the assured. The paper concludes that it is essential for maritime
corporations to appreciate the scope and nature of cyber risks policies available
and the relationship between such policies and conventional insurance products.
Otherwise, they run the risk of not utilising such insurance products in the most
efficient manner in neutralising the cyber risks they face in the course of their
business.
1 Introduction
Cyber risks pose a genuine economic threat to all types of businesses,
1 and those
operating in the maritime sector are not immune to such risks. However, a significant
increase in the number of incidents connected with cyber risks has been observed in
recent years, making shipping companies realise their vulnerabilities in case of such
B. Soyer (*)
Institute of International Shipping and Trade Law, Swansea University, Swansea, UK
e-mail: b.soyer@swansea.ac.uk
1 UK businesses were subjected to an average of 231,028 Internet-borne cyber-attacks in 2017. The
volume of cyber attacks increased by 24% in the final quarter of the year, with companies—on
average—experiencing 68,212 attacks each between October and December (data obtained from:
https://www.beaming.co.uk/cyber-reports/cyber-attacks-uk-businesses-increase-231028-2017/
(last tested on 31 December 2018)).
© Springer Nature Switzerland AG 2020
P. K. Mukherjee et al. (eds.), Maritime Law in Motion, WMU Studies in Maritime
Affairs 8, https://doi.org/10.1007/978-3-030-31749-2_29
627