The maritime industry is facing increasing risks from cyber threats such as data breaches and cyber attacks. According to the International Association of Classification Societies, the number of cyber attacks on ships has doubled in the past year. These threats can have serious consequences for shipping companies and vessel operators, including financial losses, damage to reputation, and disruption of business operations. To protect against these risks, many shipping companies are turning to maritime cyber insurance. This type of insurance covers the costs associated with responding to a cyber incident and can help minimize the impact on a company’s operations. In this article, we will explore the shortfalls of maritime cyber insurance and discuss the important considerations for shipping companies considering this type of coverage.
There are several shortfalls that companies should be aware of when it comes to maritime cyber insurance. One of the main limitations is the limited coverage provided by these policies. While they can cover the costs of responding to a cyber attack or data breach, they may not cover the costs of lost business or damage to a company’s reputation. In addition, these policies may not cover physical damage to the vessel or its cargo that results from a cyber incident.
Another issue is the high cost of coverage. These policies can be expensive, particularly for smaller shipping companies that may not have the same resources as larger competitors. According to a survey by the International Chamber of Shipping, 44% of shipping companies have not purchased cyber insurance due to concerns about cost. As a result, many companies may opt not to purchase maritime cyber insurance, leaving them vulnerable to potential cyber threats.
There are also concerns about the availability of maritime cyber insurance. Many insurance companies are hesitant to offer this type of coverage due to the complex nature of cyber risks and the potential for large losses. As a result, it can be difficult for shipping companies to find a policy that meets their needs.
Despite these shortfalls, maritime cyber insurance is an important tool for protecting against the risks associated with cyber threats in the shipping industry. Companies should carefully consider their needs and the limitations of these policies before making a decision about whether to purchase coverage.