Cyber fraud is a rapidly developing area of risk where an exponential number of incidentshave occurred over time. The immediate response of the majority of companies is to upgrade their IT department by implementing firewalls, encryption and other defense measures. However, even the most secured IT systems are at risk and what is required is a planned breached response. Generally speaking, H&M, War and P&I underwriters lack expertise when it comes to cyber perils and as a consequence most exclude same from their cover. Specialized underwriters offer a range of products including 24/7 guidance, offer legal and forensics services and appoint crisis communication experts.
An example where cyber cover shall be triggered is the insertion of malware into managers network which has a knock on effect in the operations of the ship. Additionally, hackers may gain access to the email accounts of ship managers and may alter the banking details for hire payments. In such instances, we strongly recommend that a follow up telephone call should always take place for verification purposes. Finally, it is noted that cyber insurance products may be added to existing covers such as ship management, delay Insurance, ISM DPA, naval architects, Errors and Omissions policies to obtain competitive quotations.