The introduction of digitalisation to shipping and increasing interconnectivity and automation both ashore and onboard inevitably leads to new risks associated with cybersecurity. These add to dangers such as piracy, terrorism, and war risks, which already exist.

This paper will examine whether there is a difference between cybersecurity breaches and cyber-attacks. This may require consideration of whether one is a prerequisite for the other, whether they can (co)exist separately, and whether these two events can be perceived as distinct risks. The paper reviews the existing coverage available for the risks of piracy, terrorism, and war and then considers whether new emerging risks can be included within the existing concepts.

Emerging piracy and terrorism in cyberspace may mean that existing insurance coverage is not fit for purpose. This paper will examine a new category of risks, ‘cyber-piracy’ and ‘cyber-terrorism’, which may be managed with tailor-made coverage.

This paper will also study the impact of cyber insecurity and the vulnerability of existing systems. Finally, based on a review of the existing literature, the paper tries to answer who will most likely undertake the costs of these new risks.