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BIMCO to add cyber security clause to contracts

BIMCO has announced that it is developing a new clause for its standard contracts to deal with cyber security risks and related incidents that might affect the ability of contracted parties to perform their obligations.

{mprestriction ids="1,2"}The BIMCO cyber security clause will require the parties to have plans and procedures in place to protect their computer systems and data, and to be able to respond quickly and effectively to a cyber incident. The clause also requires the affected party to notify the other party quickly in the event of a cyber security breach, so that they can take any necessary counter-measures.

The clause is designed for use in a broad range of contracts, with the ability to also cover arrangements with third-party service providers such as brokers and agents.

The liability of the parties to each other for claims will be limited to an amount agreed during negotiations, but a sum of US$100,000 will apply if no other amount is inserted.

The clause is currently being drafted by a small team led by Inga Froysa of Klaveness, Oslo. Other companies involved include Navig8, the UK P&I Club and HFW, with the project due to be completed in May 2019.

In the early stages of development the drafting team discussed if the clause should also address payment fraud, however it was concluded that the risk of this increasingly common fraud is probably best dealt with at a procedural level by companies tightening up their internal payment procedures to require verification of any changes to payment details.{/mprestriction}

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