Underinsurance Leaves Shippers Exposed To Cybercrime

There’s an insurance gap that may be increasing the cybersecurity threat facing shipping companies.

Reuters reported that the industry is now dealing with increased instances of cyberattacks on vessels, something that many of their existing insurance plans are not equipped to cover.

Officials familiar with both industries explained that these ships are left exposed to hacks that can interfere with electronic navigation devices such as the Global Positioning System (GPS), but unlike airliners, they do not have the backup systems in place that can help prevent crashes.

This leaves them vulnerable to extortion tactics or even hacks fueled by political purposes.

“Shipping is very vulnerable, not just to jamming of their systems, but now to spoofing as well,” professor David Last, a strategic advisor to the General Lighthouse Authorities of the U.K. and Ireland, told Reuters. He noted that these navigation devices can be tampered with to transmit false GPS signals.

Unfortunately, many cyber or hull insurance policies on the market today do not cover any risk related to the navigation system being jammed up or physical damage as a result of a hacking attack.

According to Reuters, 90 percent of the global trade is transported by vessels, making this a significant and growing threat.

Ship operator Consolidated Marine Management noted that ransomware remains a top challenge.