DOCSLIB.ORG

Aviation Insurance in International Air Transport

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Aviation Insurance in International Air Transport Aviation Insurance in International Air Transport Marc Rémy Halter Faculty of Law Institute of Air and Space Law McGili University Montréal, Canada January 2006 A thesis submitted to McGiII University in partial fulfillment of the requirements of the degree of Master of Laws (LL. M.) © Marc Rémy Halter 2006 Library and Bibliothèque et 1+1 Archives Canada Archives Canada Published Heritage Direction du Branch Patrimoine de l'édition 395 Wellington Street 395, rue Wellington Ottawa ON K1A ON4 Ottawa ON K1A ON4 Canada Canada Your file Votre référence ISBN: 978-0-494-25042-6 Our file Notre référence ISBN: 978-0-494-25042-6 NOTICE: AVIS: The author has granted a non­ L'auteur a accordé une licence non exclusive exclusive license allowing Library permettant à la Bibliothèque et Archives and Archives Canada to reproduce, Canada de reproduire, publier, archiver, publish, archive, preserve, conserve, sauvegarder, conserver, transmettre au public communicate to the public by par télécommunication ou par l'Internet, prêter, telecommunication or on the Internet, distribuer et vendre des thèses partout dans loan, distribute and sell th es es le monde, à des fins commerciales ou autres, worldwide, for commercial or non­ sur support microforme, papier, électronique commercial purposes, in microform, et/ou autres formats. paper, electronic and/or any other formats. The author retains copyright L'auteur conserve la propriété du droit d'auteur ownership and moral rights in et des droits moraux qui protège cette thèse. this thesis. Neither the thesis Ni la thèse ni des extraits substantiels de nor substantial extracts from it celle-ci ne doivent être imprimés ou autrement may be printed or otherwise reproduits sans son autorisation. reproduced without the author's permission. ln compliance with the Canadian Conformément à la loi canadienne Privacy Act some supporting sur la protection de la vie privée, forms may have been removed quelques formulaires secondaires from this thesis. ont été enlevés de cette thèse. While these forms may be included Bien que ces formulaires in the document page count, aient inclus dans la pagination, their removal does not represent il n'y aura aucun contenu manquant. any loss of content from the thesis. ••• Canada Abstract The thesis in the first part analyses the major international conventions with respect to liability exposure of airlines and aircraft operators performing international flights. Emphasis will be laid on the transportation of passengers, baggage and cargo and on the legal framework in place to award compensation for damages caused to persons and property on the surface of the earth. The study continues with an evaluation of natural hazards inherent to air transport and explains the typical standard aviation insurance policies and the scope of cover for the hull of the aircraft, for passengers and for third parties on the ground. Furthermore, an overview will be given of the 'extended exclusion clauses for Weapons of Mass Destruction (WMD)' commonly inserted in war risk insu rance policies as a result of terrorist attacks. Finally, this study will focus on the new insu rance requirements implemented by the EU Regulation 785/2004 and its implication for air carriers. Résumé Dans une première partie, cette thèse analyse les principales conventions internationales régissant la responsabilité encourue par les compagnies aériennes et les opérateurs d'aéronefs assurant des vols internationaux. L'accent va être mis sur le transport de passagers, de bagages et de marchandises ainsi que sur le cadre légal réglementant les dommages infligés aux personnes et aux biens à la surface. Une seconde partie traite de l'évaluation des risques naturels inhérents au transport aérien et se focalise sur l'étude des polices d'assurance standardisées dans le domaine de l'aviation. L'étendue de la couverture d'assurance relative à la fuselage, aux passagers ainsi qu'aux tiers est examinée. Enfin, l'auteur donne un aperçu du renforcement, dans les polices d'assurance traitant du risque de guerre, des clauses d'exclusion relatives à l'usage d'armes de destruction massive lors d'attaques terroristes. Finalement, cette étude examine en détails les nouvelles obligations imposées en matière d'assurance par le Règlement EC 785/2004 et leurs conséquences pratiques. Acknowledgments 1wish to express my sincere thanks to the Université de Montréal and McGili University since it enabled me to travel to Europe to research the the field of aviation insu rance and pursue interviews in order to obtain the latest information for which 1wish to express my sincere thanks. 1 should also express my deep appreciation and gratitude to my supervisor, Professor Dr. Michael Milde for his patient and understanding advice and support in my thesis. 1 have been privileged to enjoy the assistance and support of many individuals. 1am grateful to ail of them. Mr. Mark McKeigan and Ms. Susan Ness (International Air Transport Association, Montreal), Dr. R.I.R. Abeyratne (Coordinator, Air Transport Bureau, International Civil Aviation, Montreal) and Mr. John Agustin (Senior legal counsel, Legal Bureau, International Civil Aviation Organization, Montreal) and Louis Haeck, Montreal. 1would also like to acknowledge Mr. Mattias Johannson (Directorate General for Energy and Transport, European Commission, Brussels), Mr. Daniel Bandle (Managing Director, Swiss Pool for Aviation Insurance, Zurich-Airport), Mr. Andreas Peter (Managing Director, Global Head Aviation & Space, Swiss Reinsurance Company, Zurich), Mr. Laurent Noël (Legal and International Affairs, Federal Office for Civil Aviation, Bern), Ms. Regula Dettling-Ott (Vice President, Aeropolitical Affairs, Swiss International Airlines, Zurich-Airport) ail of them having interviewed during my research trip for this present thesis in Europe and who scarified their time to provide me with invaluable first hand information. 1 also would like to acknowledge the cooperation received from the Lloyd's Business Intelligence Center, London, The Central Library of the European Commission, Brussels, the Library of the Rijksuniversiteit Leiden, the Netherlands and the École Nationale d'Assurance (ENASS), Paris. 1would like to thank Maria D'Amico, Secretary at the Institute of Air and Space Law for her efforts and assistance. 1am very thankful to the staff of the law journal which provided me with invaluable support with regard to the citation style of this thesis. Finally, 1 acknowledge the unfailing emotional support of my best friends - Anna hlakobyan who 1 met in a cold winter night and snow fall in a salsa club in Montreal and Gautam Acharya who has edited this thesis. This thesis is dedicated to them. Table of contents Abstract Résumé ii Acknowledgments iii Table of contents 1 Introduction 3 Il Li a bility exposure in international aviation 4 Introduction 4 A Principles of the air carrier's Iiability for passengers, baggage 5 and cargo 1 Warsaw regime of 1929 and the Montreal Convention 1999 5 1.2 Carriage of passengers 6 1.2.1 Leading cases with regard to the terms 'accident' and 'bodily in jury' 6 1.3 Carriage of baggage 9 1.4 Carriage of cargo 10 1.5 Liability for delay 11 1.6 Limits of liability 12 1.6.1 Limits of liability with respect to passengers 12 1.6.2 Limits of liability in relation to delay, baggage and cargo 15 1.7 Jurisdiction 15 1.8 Governing liability regime outside the Montreal Convention 1999 20 1.9 Montreal Convention: Article 50 -Insurance 22 B Third party legalliability -Iegal framework 22 1 Rome Convention 1933 24 2 Brussels Insurance Protocol 1938 25 3 Rome Convention 1952 25 3.1 Rome Convention 1952 and insu rance requirements 29 3.2 Rome Convention 1952 as amended by Montreal Proto col 1978 31 4 National liability regimes and insurance requirements for damage caused by aircraft on the surface 32 5 Legal framework with regard to damage by noise 33 6 Modernization of the Rome Convention 1952 - new proposais 34 III Aviation insurance 38 Introduction 38 A Evaluation of typical aviation risks - natural hazards - 39 facts and figures 1 Types of aircraft accidents 39 2 Operational risks - natural perils 41 3 Evaluation of the risks as to the stage of flight operations 41 4 Flight risks - take off and landing risks 42 5 Risks on the ground 44 6 Taxiing risks - runway incursions 45 B Methods of rating different types of aviation insurance 46 1 Passengers liability risks 48 2 New hazards on the horizon 49 3 Passenger liability profile 49 4 Third party liability 50 5 Huillnsurance 52 6 Helicopter insu rance 53 7 Safety improvements 54 8 Facts and figures 55 1 Aviation Insurance in International Air Transport C Standard clauses - general principles in aviation insurance 57 1 Aviation ail risk hull and engine insurance 57 2 Agreed values 59 3 Engine insurance 60 3.1 Exclusions on an engine insurance 61 4 Aviation liability insurance 61 4.1 Passenger liability insurance 61 4.2 Third party liability insu rance 63 5 Insurance policy limits 64 6 Exclusion clauses 64 6.1 Noise and pollution exclusions - AVN 46 65 6.2 Geographical limit exclusion 66 6.3 Exclusion for nuclear risk 67 7 Deductibles 67 8 Insurance in aircraft finance 68 9 Residual Value Insurance (RVI) 70 o Aviation war risk insurance 71 1 Typical aviation war risks - hazards retained by the 71 war risk insu rance market 2 Security measures 72 3 War risks and allied perils insurance 73 4 Aviation 'Hull War and Allied Perils Policy (LSW555B) 75 5 Rating of aviation hull war insu rance 77 6 Facts and figures 77 7 The response of the insurance
Load more

Recommended publications
  • Maritime Administration Annual Report to Congress
    Maritime Administration Annual Report to Congress U.S. Department of Transportation Maritime Administration Maritime Administration Annual Report to Congress Fiscal Year 2005 U. S. Department of Transportation Norman Y. Mineta Secretary Maritime Administration John Jamian Acting Maritime Administrator Headquarters 400 7th Street, SW Washington, DC 20590 1 2 TABLE OF CONTENTS INTRODUCTION page 5 EXECUTIVE SUMMARY page 7 NATIONAL SECURITY page 9 Hurricane Recovery Response page 10 Ready Reserve Force page 11 Maritime Security Program & page 12 Voluntary Intermodal Sealift Agreement Inventory of Intermodal Equipment page 13 Strategic Ports page 13 National Defense Reserve Fleet page 13 Merchant Mariner Availability page 14 Maritime Training and Education page 15 Maritime Recruitment/Careers Outreach page 18 War Risk Insurance page 19 NATO Planning Board for Ocean Shipping page 20 Port Security Grants page 20 COMMERCIAL MOBILITY page 21 Short Sea Shipping Initiative page 22 Marine Transportation System page 23 Delaware River Maritime Enterprise Council page 24 Port of Anchorage page 24 Maritime Guaranteed Loan Program (Title XI) page 24 Research and Development page 26 Deepwater Port Licensing page 28 Port Facility Conveyance Program page 28 GLOBAL CONNECTIVITY page 29 Bilateral and Multilateral Maritime Negotiations page 29 International Port Security Initiatives page 30 Cargo Preference page 31 Fair and Reasonable Guideline Rates page 33 Financial Approvals page 33 Operating Costs page 33 Agile Port page 34 Operating-Differential Subsidy
    [Show full text]
  • Insurance As a Risk Management Instrument for Energy Infrastructure Security and Resilience
    INSURANCE AS A RISK MANAGEMENT INSTRUMENT FOR ENERGY INFRASTRUCTURE SECURITY AND RESILIENCE U.S. Department of Energy Office of Electricity Delivery and Energy Reliability Infrastructure Security and Energy Restoration Insurance as a Risk Management Instrument for Energy Infrastructure Security and Resilience This page intentionally left blank. U.S. Department of Energy March 2013 Page ii of viii Insurance as a Risk Management Instrument for Energy Infrastructure Security and Resilience Preface This study examines key risks that the Nation‘s critical energy infrastructure is confronting and the ways in which the insurance industry can help manage these risks, including how it identifies, assesses, and manages them and their potential impacts. Today, weather-related incidents account for the majority of economic losses in the insurance industry as well as in the critical infrastructure sectors. In addition to the traditionally-recognized natural hazards, critical energy infrastructure faces significant emerging threats, including cybersecurity and space weather risks. While the United States has a large, mature insurance market, developing insurance mechanisms for protecting critical infrastructure from these emerging risks remains a significant challenge. The lack of historical data on the frequency and severity of these events, the changing nature of technologies impacted by them, as well as the inherent uncertainties posed by these risks make it difficult to accurately assess these emerging risks and develop proper insurance products. Insurance instruments can be a useful risk mitigation tool for critical infrastructure by encouraging resilience-enhancing investments and facilitating recovery after a disaster. However, due to the increased interdependencies across various critical infrastructure systems and sectors as well as the growing dependence of today‘s society on the critical infrastructure functions and advanced technologies, the question of insurability of critical infrastructure against emerging risks faces new challenges.
    [Show full text]
  • NJDARM: Collection Guide
    NJDARM: Collection Guide - NEW JERSEY STATE ARCHIVES COLLECTION GUIDE Record Group: Department of Defense Subgroup: Adjutant General's Office (World War I) Series: Miscellaneous Records [Unprocessed Binders], c. 1917-c. 1918 Accession #: 1969.006 prob. Series #: SDEA7004 Guide Date: 4/1999 (CSM) Volume: 16.75 c.f. [121 binders] Contents Content Note This series contains records of the New Jersey National Guard during World War I. The records include, correspondence, company correspondence books, returns, charge sheets for individual soldiers who violated an Article of War, and orders. NOTE: These records have not been processed. Many binders have records related to earlier or later time periods, such as the Mexican Border Service and National Guard post-1919 records. Additionally, binders in other series, such as the Mexican Border Service and post-1919 National Guard binders, contain records related to World War I. This series is a combination of earlier series, specifically: Binders 160 and 174 in Box 1 were formerly part of Department of Defense, National Guard, Miscellaneous Correspondence - Post Civil War, 1860s-1920; Binders 7-191 in Boxes 1-34 were formerly part of Department of Defense, National Guard, Miscellaneous Records, 1909-1925. Contents Box 1 Book 160 - Pay Rolls for Troops B & D 1st Squadron Cavalry, Provisional Troop 1st Squadron Cavalry, Headquarters 1st Squadron Cavalry, Companies F, K, L and Headquarters Company 3rd Infantry, Companies A, I & K, 4th Infantry, and Companies L, Headquarters and a Detachment, 5th Infantry,
    [Show full text]
  • Additional Questions and Answers on the Establishment of a Global Scheme in the Field Op Aviation War Risk Insurance
    ADDITIONAL QUESTIONS AND ANSWERS ON THE ESTABLISHMENT OF A GLOBAL SCHEME IN THE FIELD OP AVIATION WAR RISK INSURANCE Note. - This document is intended to provide additional information on the proposal ofthe Special Group on Aviation War Risk Insurance (SGWI) for the establishment of an international mechanism (see SGWV2 Report) through questions and answers. 1. What is the exact scope of coverage of the scheme set out in Article 4.1 of the Draft Participation Agreement? With respect to the scope of coverage, the proposed global scheme is intended to return all aviation entities to the position prior to 11 September 200 1 by providing write-back coverage to all the perils previously insured under Clause AVN 52C, i.e. all the perils excluded by paragraphs (a) and (c) to (g) of the War Hijacking & Other Perils Exclusion Clause AVN 48B. This reinstatement will be on an excess basis following the applicable primary policy (definition of "Aviation War Risk Cover" in Article 1, as well as Article 4.1 of the Draft Participation Agreement in Attachment B to the State letter LE 4/64-02/55 refers). The liability arising out ofbodily injury and property damage to third parties (other than injury to aircraft passengers unless permitted under Article 4.3 ofthe Draft Participation Agreement) caused by the following penls is therefore covered: war, invasion, acts of foreign enemies, hostilities (whether war has been declared or not), civil war, rebellion, revolution, insurrection, martial law, military law, military or usurped power or attempts at usurpation
    [Show full text]
  • Cyber Security in Maritime Industry
    CYBER SECURITY IN MARITIME INDUSTRY The Exposures, Risks, Preventions and Legal Scenario Candidate number: 110 Submission deadline: 01-12-2019 Number of words: 16005 ACKNOWLEDGEMENT I would first like to thank my thesis advisor Mr. Anders. G. Hovelsrud (Insurance Director) at the Den Norske Krigsforsikring for Skib in Oslo, Norway for providing me an insight of the subject for my thesis. I would like to thank my professors at the University of Oslo, Faculty of Law, who have at all the times taught us the essentials of the Maritime Law and made sure we understand the topics that were taught during the LLM program. I would also like to acknowledge and thank the authors of various articles and news reports obtained from the web, without which this thesis would have been incomplete. Last but not the least I would also like to thank my family and friends without whose support this thesis would not have been completed. They extended a helping hand to me in whatever manner they could. They also provided me with unfailing support and continuous encouragement throughout my studies and through the process of researching and writing this thesis. Thank you Table of contents 1. INTRODUCTION AND METHODOLOGY………………………………..1-2 2. WHAT ARE CYBER RISKS AND CYBER ATTACKS?………………….2-4 3. VARIOUS DEFINITIONS OF CYBER ATTACK………………………….4-6 4. RECENT CYBER ATTACKS IN THE MARITIME SECTOR…………..6-14 4.1 Iran…………………………………………………………………………..6-7 4.2 Icefog………………………………………………………………………...7-9 4.3 Notpetya……………………………………………………………………..9-10 4.4 Ghost shipping……………………………………………………………....10-12 4.5 Mobile Offshore Drilling Units……………………………………………….12 4.6 United States of America……………………………………………………..13 4.7 Vessel Navigation controlled by hackers……………………………….......13-14 4.8 Some of the documented instances on cyber-attacks in the year 2018………14 4.8.1 December 2018………………………………………………………….14 4.8.2 November 2018………………………………………………………….14 4.8.3 November 2018………………………………………………………….14 5.
    [Show full text]
  • Interim Binder of Insurance Binder No. Wr
    U.S. Department of Transportation Maritime Administration OMB Control No. 2133-0011 Expiration Date: 6/30/2017 A federal agency may not conduct or sponsor, and a person is not required to INTERIM BINDER BINDER NO. respond to, nor shall a person be subject to a penalty for failure to comply with a OF collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a current valid OMB Control INSURANCE WR - Number. The OMB Control Number for this information collection is 2133-0011. Public reporting for this collection of information is estimated to be approximately 95 minutes per response, including the time for reviewing instructions, completing and reviewing the collection of information. All responses to this collection of information are voluntary. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to: Information Collection Clearance Officer, Maritime Administration, MAR-390, 1200 New Jersey Avenue, SE, Washington, DC 20590. The United States of America, represented by the Maritime Administrator, acting for the Secretary of Transportation, in consideration of $___________________ received as the binding fee, and premium as provided for hereinafter, hereby insures, in accordance with applicable provisions of law and subject to all limitations thereof, particularly Title XII of Merchant Marine Act, 1936, as amended, against: War Risks Hull War Risk Disbursements Endorsements
    [Show full text]
  • Insurance and September 11 One Year After
    Insurance and September 11 One Year After Insurance and September 11 One Year After Impact, Lessons and Unresolved Issues Edited by Patrick M. Liedtke and Christophe Courbage International Association for the Study of Insurance Economics "The Geneva Association" Route de Malagnou 53 Tel. +41-22-707 66 00 CH-1208 Geneva Fax. +41-22-736 75 36 http://www.genevaassociation.org E-mail:[email protected] Copyright © 2002 The International Association for the Study of Insurance Economics ISBN 2-9700339-1-7 First published August 2002 The Geneva Association Route de Malagnou 53, CH-1208 Geneva Second edition Printed and cover graphics by PWS Route des Jeunes 33, CH-1227 Carouge All rights reserved. Except for the quotation of short passages for the purpose of criticism and review, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. Except in the United States of America, this book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser. British Library Cataloging in Publication Data Cataloging-in-Publication data applied for Library of Congress Cataloging in Publication Data Insurance and September 11 - One Year After / edited by Patrick M.
    [Show full text]
  • Billing Code: 4910-81-P Department Of
    This document is scheduled to be published in the Federal Register on 07/13/2020 and available online at federalregister.gov/d/2020-14959, and on govinfo.gov BILLING CODE: 4910-81-P DEPARTMENT OF TRANSPORTATION Maritime Administration [Docket No. MARAD-2020–0094] Request for Comments of a Previously Approved Information Collection: War Risk Insurance, Applications and Related Information AGENCY: Maritime Administration, DOT. ACTION: Notice and request for comments. SUMMARY: In compliance with the Paperwork Reduction Act of 1995, this notice announces that the Information Collection Request (ICR) abstracted below is being forwarded to the Office of Management and Budget (OMB) for review and comments. A Federal Register Notice with a 60-day comment period soliciting comments on the following information collection was published on April 28, 2020. DATES: Comments must be submitted on or before [Insert date 30 days after the date of publication in the FEDERAL REGISTER]. ADDRESSES: Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to www.reginfo.gov/public/do/PRAMain. Find this particular information collection by selecting "Currently under 30-day Review - Open for Public Comments" or by using the search function. FOR FURTHER INFORMATION CONTACT: Michael Yarrington, 202-366-1915, Office of Marine Insurance, Maritime Administration, U.S. Department of Transportation, 1200 New Jersey Avenue, SE, Washington, DC, 20590. SUPPLEMENTARY INFORMATION: Title: War Risk Insurance, Applications and Related Information OMB Control Number: 2133-0011 Type of Request: Renewal of a Previously Approved Information Collection Background: The U.S. Government's War Risk Insurance program is a standby emergency program for national defense and national security.
    [Show full text]
  • VA History in Brief
    ~ : Department of ~ ·Veterans Affairs ~: . ~ ' - ~. ,,. ... 2 VA History in Brief Table of Contents Chapter Page 1 Colonial era through the Civil War 3 2 World War I era 7 3 World War I bonus march 9 4 Veterans Administration established, World War II, GI Bill 12 5 Post World War II through the Korean War 15 6 Vietnam War era, Agent Orange 18 7 Post-Vietnam era 22 8 VA becomes a Cabinet-level department; Persian Gulf War 26 9 Women veterans; health care reform 28 10 A look at today’s VA 32 VA History in Brief 3 Chapter 1 American Colonies From the beginning, the English colonies in North America provided pensions for disabled veterans. The first law in the colonies on pensions, enacted in 1636 by Plymouth, provided money to those disabled in the colony’s defense against Indians. Other colonies followed Plymouth’s example. In 1776 the Continental Congress sought to encourage enlistments and curtail desertions with the nation’s first pension law. It granted half pay for life in cases of loss of limb or other serious disability. But because the Continental Congress did not have the authority or the money to make pension payments, the actual payments were left to the individual states. This Battle of Lexington, April 19, 1779 obligation was carried out in varying degrees by different states. At most, only 3,000 Revolutionary War veterans ever drew any pension. Later, grants of public land were made to those who served to the end of the war. In 1789, with the ratification of the U.S.
    [Show full text]
  • Congressional -Record-House. January 25
    2032 CONGRESSIONAL -RECORD-HOUSE. JANUARY 25, AI ·o, memorial auopted by the City Council of Malden, Mass., S. J. Res: 214. Joint resolution authorizing and directing the urging Congre s to enact legislation requiring draft boards and accounting officers of the Treasury to allow credit to the dis­ legal auvisory boards to assist honorably discharged soldiers, bursing clerk of the Bureau of War Risk Insurance in certain sailors, -anu ·marines to secure employment; to the Committee cases; to the Committee on Interstate and Foreign Commerce. on Military Affairs. Also, · petition of Percy F. Bicknell, of Malden, Mass., for SP_E.A.KER PRO TEMPORE TO PRESIDE ON SUNDAY, JANUABY 26. repeal of postal amendment increasing postage on periodicals; The SPEAKER. The Chair designates Judge W ATKI~s, of to the Committee on Ways and Means. Louisiana, to preside to-morrow. By 1\Ir. KELLY of Pennsylvania: Petition of Rotary Club of ThTDIAN APPROPRIATIONS. McKeesport, Pa., favoring continuance of Government control of The SPEAKER. When the House adjourned yesteruay there wire systems until Congress shall provide proper procedure ; to was an agreement that a yea-and-nay vote be had upon the the Committee on Interstate and Foreign Commerce. Hastings amendment to the Indian appropriation bill. The · By Mr. KENNEDY of Rhode Island: Memorial of General Clerk will report the bill by title. Assembly of the State of Rhode Island,' urging upon Congress The Clerk read as follows : the passage of legislation giving financial aid to soldiers, sail­ A bill (H. R. 14746) making appropriations for the current and con­ ors, and marines; to the Committee on Military Affairs.
    [Show full text]
  • Risky Business: Lessons for Mitigating Cyber Attacks from the International Insurance Law on Piracy
    Risky Business: Lessons for Mitigating Cyber Attacks From the International Insurance Law on Piracy Scott J. Shackelford, JD, Ph.D.* & Scott Russell, JD** ABSTRACT Organizations of all sizes have increasingly been investigating the prospect of investing in cyber risk insurance to better manage the multifaceted cyber threat. But how useful is cyber risk insurance? Is international insurance law impacting the cyber risk insurance market? And what lessons can be taken from other analogies, such as the maritime piracy context? This article discusses the impact of cyber attacks on the private sector along with analyzing the benefits and drawbacks of relying on cyber risk insurance to enhance cybersecurity by drawing from the maritime insurance industry’s response to piracy. We argue that firms must take a proactive stance to managing cyber attacks for their competitive wellbeing as well as to securing critical international infrastructure, but that stakeholders should learn from past experiences and begin by defining “cyber attacks” and international cybersecurity due diligence norms. I. INTRODUCTION A legal battle has been brewing since the 2011 cyber attacks on Sony pitting Zurich American Insurance Company (“Zurich”) against Sony over the question of insurance coverage for a massive data breach involving more than 100 million lost consumer records and associated monitoring costs.1 Zurich has *Assistant Professor of Business Law and Ethics, Indiana University; Senior Fellow, Center for Applied Cybersecurity Research; W. Glenn Campbell and Rita Ricardo-Campbell National Fellow, Stanford University Hoover Institution. 2 MINNESOTA JOURNAL OF INT'L LAW[Vol. 24:nnn argued that it should be absolved of any liability under its policy with Sony in the more than fifty punitive class-action lawsuits winding their way through legal systems in the U.S.
    [Show full text]
  • B-172699 Opportunity for Savings in Providing War Risk Insurance For
    REf’ORT TO THE CONGRESS - Opportunity For Savings In Providing War Risk Insurance For Contractor Property And Em ployees B-772699 Department of Defense Department of State Department of Commerce BY THE COMPTROLLER GENERAL OF THE UNITED STATES COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. D.C. 20545 B- 172699 To the President of the Senate and the I ’ Speaker of the House of Representatives This is our report on the opportunity for savings in providing war risk insurance for contractor property and employees. The report is based on a study we w‘ade in various commands and offices of the De- ’ I ‘- partment of Defense, the Department of State, and the Department of I- ‘: ‘I. -1 7 Commerce. y Our review was made pursuant to the Budget and Accounting Act, 1921 (31 U.S.C. 531, and the Accounting and Auditing Act of 1950 (31 U.S.C. 67). Copies of this report are being sent to the Director, Office of Management and Budget; the Secretary of Defense; the Secretary of State; and the Secretary .of Commerce. Comptroller General of the United States p 5QTH ANNIVERSARY 1921- 1971 COMPbROiLER GENERAL'S OPPORTUNITY FOR SAVINGS IN PROVIDING WAR REPORT TO THE CONGRESS RISK INSURANCE FOR CONTRACTOR PROPERTY AND EMPLOYEES, DEPARTMENTOF DEFENSE, DEPARTMENT OF STATE, AND DEPARTMENTOF COMMERCEB-172699 ------DIGEST WHY THE REVIEW WAS MADE The Department of Defense (DOD) and the Agency for International De- r+ T '- velopment (AID) generally reimbursed Government contractors for the cost of insurance purchased&to provide protection against war hazards to their property and employees.
    [Show full text]