
Security Advisory: Middle East Tensions - Insurance and Operational Guidance
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- Security Advisory: Middle East Tensions - Insurance and Operational Guidance
Tensions in the Arabian Gulf and wider Middle East continue to escalate amid Israeli-Iranian hostilities. The Joint Maritime Information Centre (JMIC) has raised the regional threat level to “Significant,” with increased risks to commercial shipping from direct or retaliatory attacks and cyber/electronic interference. Key Threats include drone/missile activity targeting Western-linked vessels, electronic spoofing disrupting navigation systems, and heightened danger in chokepoints such as the Strait of Hormuz.
Insurance Position: P&I, War Risks, and Excess War Cover
War Risks insurance provides cover for losses arising from specific perils such as war, terrorism, piracy, and related hostilities—perils that are generally excluded from standard P&I Rules-based cover and Hull & Machinery policies. This specialist cover is typically arranged through War Risk Clubs or market underwriters, and can be cancelled with seven days’ notice in areas of heightened risk, known as Additional Premium (AP) areas.
While P&I cover remains geographically broad, it excludes liabilities arising from war-like events, including acts of war, civil unrest, and use of weapons. However, liabilities unrelated to the conflict, such as a crew injury from a non-war-related incident, may still be recoverable. To bridge the gap, most International Group Clubs, including the Shipowners Club, offer Special War Risks P&I Excess Cover. This sits above the ship’s own war P&I cover and provides an additional limit (typically up to US$500 million) for war-related P&I liabilities exceeding the insured value of the vessel. Charterers can also obtain extensions to their P&I entries to restore cover for war-related liabilities, subject to specific clauses and terms.
Prudent Risk Management Expectations
Given the current tensions, we expect prudent shipowners to undertake reasonable measures to mitigate risk. For instance:
- Conduct ship- and voyage-specific risk assessments before entry into the region
- Provide additional crew training and conduct security drills
- Ensure appropriate medical preparedness onboard in the event of an attack
- Verify that vessel hull, flag, and class approvals are current
- Adhere to flag state guidance and restrictions
- Confirm war risks and excess P&I cover are in place and responsive
- Consult key resources:
- Maritime Global Security website
- OCIMF Hull Vulnerability Study
- US Maritime Advisories
- Register transit with MSCHOA and report concerns or suspicious activity to UKMTO
This list is not exhaustive but reflects the type of due diligence the Club would expect from its Members operating in or near a high-risk region.
Members may find it useful to contact a local correspondent for further information about the situation and safety in the region. We also continue to direct Members to BMP-Maritime Security, a vital source of layered guidance on vessel protection and situational awareness.