Beazley's new cyber insurance targets luxury superyachts

Specialist insurer  Beazley has launched affirmative cyber insurance for luxury yachts that protects against physical damage, loss of access, threatened and actual ransom of the vessel.

Cyber Defence for Superyachts also provides in-built risk prevention and immediate response services if there is a cyber breach.

Beazley explained that digital technology on board superyachts has continued to enhance safety, efficiency and communications, however, this has further increased the interconnectivity of onboard and shore-based systems. This has created unintended complexity, which can lead to system failures and opportunities for prospective cyber attackers to exploit a vessel’s network and leave it more vulnerable to infiltration than ever before.

The new coverage provides a comprehensive risk assessment helping to identify and mitigate potential gaps in security that could leave new policyholders vulnerable. In the event of a breach, the cover will provide immediate response services accessible to policyholders via a 24-hour claims hotline.

The cover has been designed by Beazley’s underwriting, claims, risk and breach response specialists who have applied decades of experience and deep understanding of marine and cyber risk to build a policy that protects the vessels and their systems from these intangible threats and preserves the privacy, safety and comfort of owners, their guests and crew.

Richard Young, marine underwriter and head of hull at Beazley, said: “Following guidelines introduced this year by the International Maritime Organization (IMO), the onus is now greater on vessel owners and operators to demonstrate robust cyber risk management and to understand, assess, and manage risk to improve overall operational resilience in shipping.

“Reducing the cyber threat to superyachts is at the heart of our policy, which provides a triple defence mechanism of preventative mitigation services, traditional asset indemnity and immediate response services to incidents.”

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