Navigating Cyber Risk in Ports and Terminals

Last year was exceedingly busy for ports, terminals and maritime-related operations of all types—but in some very unwelcome ways. Early in the year, for example, a ransomware attack forced a major Norway-based ship software supplier to shut down its IT servers, impacting approximately 1,000 vessels. Japan’s largest port was targeted, forcing it to halt loading and unloading containers for days. Late in the year, a large defense shipbuilder was the target of a cyberattack while negotiating with potential investors.

Safeguarding Critical Infrastructure: Cyber Risk in Ports and Terminals

The web of systems and technologies that underpin the efficiency of ports and terminals is intricate—from cargo tracking to customs processing. Consider the potential havoc wreaked by cybercriminals penetrating

these digital fortresses. As seen, cyberattacks can disrupt operations, compromise sensitive data and business dealings, and disrupt the fluidity of global trade.

Cybercriminals never sleep, and the maritime sector is not immune to the growing tide of cyber threats. It’s no surprise that the Biden administration enacted new requirements in early 2024 in response to these types of maritime cyber threats.

In addition to strengthening their cybersecurity and cyber supply chain risk management processes, port and terminal owners and operators should carefully review their cyber liability program with a knowledgeable insurance expert.

The Insurance Compass: Navigating Cyber Risk

Cyber insurance is a crucial lifeline in safeguarding ports and terminals against the financial fallout of cyber incidents. This specialized coverage assists in mitigating financial losses incurred due to cyberattacks, data breaches, and other digital perils.

While every cyber policy is unique, typical coverage types include business interruption losses, computer forensics, data recovery and restoration, damaged or compromised systems repair or replacement, legal fees related to regulatory issues or third-party lawsuits, crisis communication and public relations fees, customer notification, call center setup and operation, credit monitoring services, ransom payment (if legally allowed), lost funds, customer credits and refunds, and reputational damage.

The nuanced nature of maritime operations, combined with the intricate cyber landscape, necessitates an insurance solution that seamlessly bridges both worlds.

Strategically Anchoring Your Protection

Opting for a specialized insurance broker isn’t merely a choice; it’s a strategic investment in safeguarding your maritime operations. Cyber risks are evolving rapidly, requiring continuous vigilance and adaptable coverage solutions. With a broker well-versed in both maritime intricacies and cyber complexities, you can rest assured that your insurance strategy remains robust and well-calibrated to the shifting threat landscape.

Your Next Voyage

As you navigate the multifaceted waters of cyber risk within ports and terminals, consider Hylant a dedicated guide to your insurance journey. We understand marine risks and stand ready to tailor solutions that protect your operations from digital threats. Together, let’s ensure that your maritime endeavors remain secure in the face of evolving cyber challenges.

Related Reading: What Is Marine Insurance?

The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.