“How would standard P&I cover operate in such a scenario?

Poolable P&I cover Other than the exclusion relating to paperless trading, there is no express cyber exclusion in the club’s rules. As such, a member’s normal P&I cover will continue to respond to P&I liabilities arising out of a cyber attack so long as the attack in question does not constitute ‘terrorism’, ‘a hostile act by or against a belligerent power’ or another war risk excluded under rule 4.3 of the club’s rules. Whether or not a cyber attack constitutes an act of terrorism for the purposes of the rules will generally depend upon the motivation behind it. In the context of war risks, terrorism is broadly understood to denote acts aimed to kill, maim or destroy indiscriminately for a public cause. Accordingly, if, for example, a cyber attack were to be perpetrated by an individual or group for the purposes of causing general disruption and for no public cause, then this would be very unlikely (without more) to constitute terrorism for the purposes of the rules and a member’s cover will respond in the normal manner. However, in the event of any dispute as to whether or not an act constitutes terrorism, the club’s board is given the power under rule 4.3 to decide and such decision shall be final.”