New piracy risk management service

Special Contingency Risks Limited (SCR), a division of Faber & Dumas, and maritime risks adviser Underwater Security Consultants Limited have launched a comprehensive package of services geared towards risk prevention and management in connection with acts of piracy. The service, branded as Vessel Shield, offers insurance and risk management solutions to what Doug Milne, chief executive of SCR, describes as an increasingly grey area in the marine industry relating to payment of ransoms and management of a hijack situation. Last year, there were a total of 155 pirate attacks or hijackings in Somalian waters, particularly in the Gulf of Aden, according to the International Maritime Bureau. In the first two months of this year, there have been reports of more than 30 attacks in the same region. Mr Milne said that this outbreak of high-profile piracy has reignited the debate over the extent of cover for such events. A lack of clarity in the marine market has meant that coverage responsibility is being called into question. When an act of piracy occurs, it is not clear who is responsible for paying the claim. Is it the vessel’s hull or war risk insurer, or the provider of kidnap & ransom cover? Mr Milne said the Vessel Shield package addresses this coverage dilemma by offering an insurance product which clearly provides primary cover for acts of piracy, but also seeks to mitigate the physical security risk as well. In this regard, Vessel Shield offers preparation, training and advice as part of the package of services. According to Mr Milne, the new service provides a targeted answer to a marine industry problem that will go a long way to enhance the safety and peace of mind of all those looking to protect their vessels and cargo.