News 18 Jun, 2020 P&I Cover and Cyber risk At present there are no specific cyber exclusions in standard P&I cover. However, Members are obliged to ensure that cover is not prejudiced by acting in an “imprudent, unsafe, unduly hazardous or improper” way and this obligation extends to their conduct in relation to cyber risks.  Basic cover At present there are no specific cyber exclusions in standard P&I cover. Members are therefore covered for P&I risks caused or contributed to by a cyber risk (though subject to the war risks exclusion, of which more below). They are however nevertheless obliged to ensure that cover is not prejudiced by acting in an “ imprudent, unsafe, unduly hazardous or improper ” way and this obligation extends to their conduct in relation to cyber risks.   Class certification and SMS Members also obligated to ensure that the vessel is classed by an approved Classification Society and that they maintain all statutory certificates issued by the vessel’s flag state. Owners will shortly have to comply with International Maritime Organisation (IMO) “ Resolution MSC 428/98 Cyber Risk Management in Safety Management Systems ” which mandates that “ cyber risks are appropriately addressed in safety management systems no later than the first annual verification of the Document of Compliance after 1 January 2021”. Consequently, when it becomes a statutory requirement by the flag state after January 2021 to maintain a certified cyber risk management system failure to do so may be prejudicial to Club cover. War & terror There is a developing threat of cyber risks of a nature which fall under war risks. Terrorist and ideological hackers are increasingly sophisticated and there is also the risk of state interference in GPS and associated navigation systems. P&I clubs are not the primary underwriters of war P&I cover, which is often provided as an ancillary cover to an owner’s hull war cover. Liabilities arising out of