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In recent years, superyachts have become floating, always-on tech hubs. From satellite internet and smart lighting to complex navigation systems and climate controls, every onboard convenience is powered by interconnected digital systems. High-profile owners – &nbsp;including celebrities, executives, and government officials – &nbsp;make these vessels high-value targets for cybercriminals seeking ransom money, intelligence, or the simple thrill of a high-profile breach.While connectivity enhances onboard comfort and entertainment, it also transforms yachts into mobile data centres – with all the associated cybersecurity risks, says Scott Stamper, Managing Director National Marine Practice, <a data-gid="gid://syiq/Company/7440" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Risk Strategies (Company)">Risk Strategies</a>, Part of the Brown &amp; Brown team. And with yachts linked via satellite and cloud systems, cyber attackers don't need to be anywhere near the boat to cause chaos.Perhaps most concerning, Stamper points to a recent PSPI report that found nearly 70 percent of superyacht owners lack full awareness of their vessels’ cyber vulnerabilities. “A single compromised device – whether from a guest, crew member, or vendor – can lead to operational, financial and reputational damage,” he said.<img src="https://photo-assets.superyachttimes.com/photo/367708/image/large-f3dd06b5c53dc3b524449f659492ef22.jpg" data-gid="gid://syiq/Photo/367708">Why superyachts are mega cyber targetsSuperyachts combine several high-risk factors that make them attractive targets for cybercriminals. They're loaded with high-value personal data, financial details, and sensitive communications. Meanwhile, crew, guests, vendors are constantly hopping onto onboard networks, often without strict access controls.“A single unsecured connection, such as a contractor’s malware-infected laptop or a guest falling for a phishing email, can expose critical onboard systems to compromise,” Stamper explains.With navigation, propulsion, and entertainment systems all interconnected, a breach can escalate rapidly. A GPS spoofing attack, for example, could redirect a yacht into restricted waters — an expensive detour at best, and a diplomatic or physical threat at worst.Problematically, the private marine sector isn't held to the same cybersecurity standards as commercial shipping. With no clear regulatory roadmap, owners are left to figure out cybersecurity on their own, a situation highlighted in recent coverage of superyacht cyber risks.Further, third-party vendors often lack strong cybersecurity protocols, introducing additional potential vulnerabilities within critical systems. “Even small supply chain partners, such as providers of navigation software updates or onboard entertainment systems, can unknowingly introduce vulnerabilities that compromise the entire vessel,” said Stamper. <img src="https://photo-assets.superyachttimes.com/photo/367706/image/large-9560cfc2842a5bfad46654b14a9d49c1.jpg" data-gid="gid://syiq/Photo/367706">The impact of cyber threats on superyachtsRansomware attacks have locked owners out of navigation systems, forcing them to pay hefty ransoms to regain control. GPS jamming incidents have led vessels off course, sometimes into unauthorised or dangerous zones.Eavesdropping is another concern. If attackers gain access to onboard surveillance or audio systems, they could intercept private conversations or footage – a significant risk for high-profile individuals who depend on discretion.The consequences are wide-reaching:• Operational chaos: Cancelled charters, disrupted itineraries, or full-on marooning at sea.• Financial fallout. Ransom payments, legal fees, forensic investigations, and recovery costs quickly spiral into the millions.• Reputational damage: Sensitive details about owners or guests leaking to the public can tarnish personal brands or even cause security threats.• Insurance implications: Insufficient cybersecurity controls may lead to reduced coverage, exclusions, or heightened underwriting scrutiny.Considering these high-stakes consequences, treating cybersecurity as an integral part of safe and seamless sailing is just as important as luxury and comfort.<img src="https://photo-assets.superyachttimes.com/photo/367707/image/large-3ca76236ff4a830259cce7abb57d3fed.jpg" data-gid="gid://syiq/Photo/367707">Reducing risk: best practices to defend superyachtsTaking a layered, proactive approach to cyber risk can greatly strengthen defences and keep operations running smoothly.•&nbsp;Begin with foundational practices: Conduct regular cyber risk assessments to identify vulnerabilities before attackers do. Train crew members, especially Electronic Technical Officers (ETOs), on phishing awareness, password hygiene, and how to spot suspicious activity.• Segment onboard networks: Prevent guests from accidentally (or intentionally) accessing operational systems. Multi-factor authentication and strong access controls are critical for anything involving navigation or system management.• Enable active monitoring: Watching network logs in real time allows the crew to contain a breach before it spreads. A rehearsed incident response plan ensures the team isn't scrambling during a crisis.• Stay current with updates: Ensure all software, including third-party applications and IoT devices, is routinely patched and updated to mitigate known vulnerabilities.These measures strengthen a yacht's digital defences and help crews respond quickly if something goes wrong, echoing approaches laid out in recent guidance on cybersecurity at sea. Beyond staying ahead of technological pitfalls, it also requires financial resilience and expert support when incidents escalate.<img src="https://photo-assets.superyachttimes.com/photo/367821/image/large-6d54873ce4a24893ca6b598f0392b289.jpg" data-gid="gid://syiq/Photo/367821">The role of cyber insuranceEven with the best defences, there's no such thing as zero risk. That's where cyber insurance, tailored to marine operations, comes into play.Modern policies can cover ransom demands, data recovery, forensic investigations, and even lost charter income if a breach disrupts trips. However, coverage terms and inclusions can vary significantly. Coverage must be customised based on vessel size, travel patterns, and onboard tech complexity.Best practice is to engage a broker who truly understands marine cybersecurity. They can help owners identify gaps, vet third-party vendors, and navigate the complex aftermath of a cyber incident. A specialised broker can also provide guidance on emerging compliance requirements and help refine response plans before incidents happen. As insurers are looking for evidence of robust cyber hygiene before offering coverage, proving a strong security posture upfront helps your chances at better pricing and terms.Regulatory outlook and emerging considerationsThe regulatory landscape is slowly catching up. The <a data-gid="gid://syiq/Company/4531" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="International Maritime Organization (Company)">International Maritime Organization (IMO)</a> now requires cyber risk management as part of Safety Management Systems. In Europe, the NIS2 directive is expanding security expectations across digital infrastructure, including private vessels.Major classification societies like Lloyd’s Register and Bureau Veritas are pushing for stricter cyber compliance, emphasising proactive risk assessments, vendor oversight, and data protection. As attack methods become more sophisticated, regulations will further emphasise proactive risk assessments, vendor oversight, and data protection strategies.Staying secure and insured at seaThe world of superyachts is evolving fast, and so are the risks. Owners, captains, and advisors increasingly recognise that cybersecurity safeguards privacy, supports operational continuity, and preserves the exclusivity associated with luxury yachting.&nbsp;By combining strong onboard defences with tailored insurance, they can stay in control and keep the sea the serene escape it’s meant to be.Marine Insurance Specialists at <a data-gid="gid://syiq/Company/7440" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Risk Strategies (Company)">Risk Strategies</a>The marine specialty division at <a data-gid="gid://syiq/Company/7440" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Risk Strategies (Company)">Risk Strategies</a>, a leading North American specialty insurance brokerage and risk management and consulting firm, is led by deeply experienced marine insurance risk and insurance advisors, including experts who joined the team through the acquisition of long-time marine specialty brokerages <a data-gid="gid://syiq/Company/3570" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Atlass Insurance Group (Company)">Atlass Insurance</a> and <a data-gid="gid://syiq/Company/3951" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Gowrie Group (Company)">Gowrie Group</a>. The marine specialists at Risk Strategies are uniquely able to help yacht owners, yacht managers, and prospective owners navigate the process of securing yacht insurance in today’s complex, competitive market.

Yacht cyber security with Risk Strategies

Risk Strategies on the risk for yachting cyber attacks and how to avoid. 

Why superyachts are major cyber targets and what to do about it

Lithium-ion batteries’ role in yachting is growing. They offer superyachts a lightweight, efficient solution for powering everything from personal watercraft and tenders to e-bikes, phones, tablets, tools, toys, and appliances onboard. However, the surge in adoption comes at a potentially steep cost: a <a href="https://www.powerandmotoryacht.com/maintenance/lithium-batteries-are-they-safe" target="_blank">rise in catastrophic fires</a> on luxury vessels, with substantial insurance implications, according to Scott Stamper, Managing Director National Marine Practice, for US- based insurance brokerage <a data-gid="gid://syiq/Company/7440" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Risk Strategies (Company)">Risk Strategies</a>.Recent incidents, like the total loss of a 47-metre yacht in the Bay of Olbia due to a lithium-ion battery fire, highlight the devastating consequences of thermal runaway. These incidents also showcase the dangers posed by seemingly innocuous equipment and unsafe charging practices — a bicycle battery fire aboard the 46.7-metre <a data-gid="gid://syiq/Company/54" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Heesen Yachts (Company)">Heesen</a> superyacht <a data-gid="gid://syiq/Yacht/54" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Atina 46.7m (153'3&quot;)Heesen Yachts2008">Atina</a> and another on the Delta Yacht in the Bahamas led to total losses.<img src="https://photo-assets.superyachttimes.com/photo/322548/image/large-9adc80d8d27a1012e75b380f864aabd6.png" data-gid="gid://syiq/Photo/322548">The yachting industry is at a crossroads, Stamper says. “Action must be taken to protect mega yachts and their passengers from the dangers of lithium-ion batteries and mounting losses,” he warns. Underwriters, he said, are scrutinising lithium-ion battery use, crew training, and safety protocols with increased intensity. Some insurance policies are evolving to incorporate loss control surveys and coverage subjectivities, Stamper noted.The message is clear: yacht owners, captains, and crew must become intimately familiar with the evolving landscape of lithium-ion batteries, associated risks, and the insurance industry’s developing requirements.&nbsp;Insurance implications of rising lithium-ion battery risksThe escalating threat of lithium-ion battery fires has prompted insurers to reevaluate their underwriting practices. Superyacht owners — and anyone in the yachting industry — should keep an eye on shifting policies and be aware of the following:Underwriter challenges:&nbsp;Lithium-ion batteries increase the risk exposure for insurance companies underwriting yachts. Unlike other fires, fires caused by lithium-ion batteries can be uncontrollable and near-impossible to extinguish. This increases the potential for large-scale liability claims and property total losses in the multi-millions.Insurers are grappling with the best way to underwrite vessels with lithium-ion batteries on board. How can they balance risk management with clients’ needs? There is still not a clear answer, but insurers are making some policy and process changes.&nbsp;Increase in subjectivities:&nbsp;Increasingly, Stamper explained, insurers are writing subjectivities into yacht policies that state yacht owners and crew must adhere to specific safety protocols for the insurance coverage to remain valid. By requiring compliance with these conditions, insurers aim to protect themselves from large claims while simultaneously promoting safer operating practices within the yachting industry.Subjectivities differ from traditional exclusions in that they don't automatically void coverage upon breach. However, Stamper says failure to comply with these conditions can lead to a claim being denied. Subjectivities are more likely to affect policies for older boats, he added.Loss control surveys:More and more, insurers are also mandating loss control surveys for yacht owners. These comprehensive audits involve in-person inspections and interviews by technical experts who evaluate the yacht's equipment, safety protocols, crew knowledge, and overall preparedness.If safety standards and protocols are deficient, a detailed report is sent to the yacht owner’s insurance broker. The yacht owner will need to make adjustments before coverage will be issued. The results of these surveys can influence the terms of coverage, including potential subjectivities. Underwriters may also use the survey findings to determine the appropriate level of coverage to offer, reflecting the assessed risk profile of the yacht.<img src="https://photo-assets.superyachttimes.com/photo/311976/image/large-505d37eea8992665b035ea5b0fb6cfe7.jpg" data-gid="gid://syiq/Photo/311976">Future policy evolution:&nbsp;Right now, there is no standard approach to the policy language specific to lithium-ion battery risks. Stamper said that, as time goes on, and more related claims come through, this will shift. Language and protocols, he said, will become standard across policies regardless of insurer, and we will see even more subjectivities or outright exclusions for certain circumstances of lithium-ion battery claims.Emerging protocols, classifications, and best practicesAs the industry seeks to address the growing challenges posed by lithium-ion batteries, new protocols, classifications, and best practices are emerging. The following advancements can help yacht owners and operators make informed decisions that ensure the safety of their vessels:<ul><li>Lloyd’s Joint Hull Committee (JHC) protocols Lloyd’s of London, one of the largest underwriters for the yachting industry, issued new guidelines in April 2024 from Lloyd's Joint Hull Committee Circular. The protocols focus on safe usage, storage, and charging of lithium-ion batteries on yachts. This represents a step forward for the industry, foreshadowing an eventual move towards standardised safety protocols to mitigate risks. </li><li>Crew training Training yacht crew in lithium-ion battery safety is one of the most important risk mitigation measures anyone can take. In the near future, Stamper said, mandatory training requirements will likely be integrated into insurance policy terms. Virsec offers the most widely recognised and adopted <a href="https://virsec.org/courses/li-ion-battery-safety-training-superyachts/" target="_blank">training course on lithium-ion battery safety on superyachts</a> and is well worth the investment. </li><li>Classifications societies Classification societies play a crucial role in lithium-ion battery safety in mega yachts. These organisations, such as <a href="https://www.superyachttimes.com/companies/lloyds-register" target="_blank">Lloyd's Register</a>, <a href="https://www.superyachttimes.com/companies/bureau-veritas" target="_blank">Bureau Veritas</a>, and <a href="https://www.superyachttimes.com/companies/rina" target="_blank">RINA</a>, establish and enforce standards for vessel construction, manning, and safety. Compliance with these standards is essential for maintaining a vessel's flag or class status. While battery safety protocols are not yet formally incorporated into all classification society standards, Stamper warned they are likely to become a mandatory requirement in the coming years. </li><li>Innovations and best practices To mitigate the risks associated with lithium-ion batteries, consider implementing the following:<ul><li>Fireproof charging boxes: These specialised enclosures are designed to contain removable batteries and are equipped with sensors to detect gas emissions, preventing fires before they can start.</li><li>Designated safe spaces: Designating specific areas on the vessel for battery charging can help minimise the risk of fires spreading to other parts of the yacht.</li><li>Proper usage, storage, and charging: Adhering to manufacturer guidelines is essential for ensuring battery safety and longevity. This includes avoiding overcharging, extreme temperatures, and physical damage.</li><li>Close monitoring of guest devices: Guest-owned devices, such as laptops and phones, should be closely monitored when charging in guest staterooms to prevent potential hazards.</li></ul></li></ul>Protocols and best practices can help mitigate lithium-ion battery risks. Comprehensive insurance coverage should be carefully arranged with a knowledgeable yacht insurance broker to respond to financial losses should an incident occur. &nbsp;<img src="https://photo-assets.superyachttimes.com/photo/320567/image/large-16a744a378f59ba2cf93f25ffed490ba.jpeg" data-gid="gid://syiq/Photo/320567">Additional coverage considerations for lithium-ion battery risks on superyachtsBeyond standard marine insurance, Stamper advised that yacht owners may need to explore specialised coverage options to address the unique risks and liabilities posed by lithium-ion batteries. Key considerations include:Environmental liability, toxic wreck removal: If their yacht goes down, yacht owners are liable for wreck removal and disposal including the &nbsp;potential environmental damage and pollution. Make sure your policy will cover the costs. <ul><li>Domestic vs. International policies: There are important differences between U.S. domestic and international yacht policies. U.S. underwriters often include property damage and liability in one policy. Such policies most often cover yachts used domestically. &nbsp;For international yachts, it is common that coverage will be afforded via a separate hull and liability underwriter. Protection and Indemnity Clubs (P&amp;I) often provide liability coverages for higher valued vessels. </li><li>Personal umbrella: Personal excess liability or umbrella policies may only provide a limited scope of coverage. Employment Liability insurance for paid crew and Pollution &amp; Environmental Damage Liability are often excluded. To protect the vessel and her owners, it is best practice to secure the appropriate limit of liability through a true marine liability form of coverage. &nbsp;</li><li>Setting limits: Given the increasing risks and catastrophes related to lithium-ion batteries, CAT events, and increasing marine liability exposures, exploring higher limits with an experienced marine insurance expert is smart risk management. <img src="https://photo-assets.superyachttimes.com/photo/307111/image/large-6a78b400ef522954493d5774c1c68d9c.png" data-gid="gid://syiq/Photo/307111">Charting a safer course</li></ul>The rise of lithium-ion batteries in mega yachts has introduced new challenges and risks for the marine and yachting industry. The growing number of catastrophic fires and associated insurance claims will continue to impact the insurance market for years to come.&nbsp;The yachting and insurance industries must adapt to mitigate these risks. This includes developing stricter safety protocols, standardised language in insurance policies, and comprehensive educational programs for yacht owners and crew.Stay informed as requirements evolve, consult with experts, and invest in training. Together, we can navigate the challenges of lithium-ion technology and enjoy its benefits without compromising safety on the seas.

How lithium-ion battery hazards are changing yacht insurance

Lithium-ion batteries’ role in yachting is growing. However, the surge in adoption comes at a potentially steep cost.

